Victoria Beckham’s fashion and beauty lines continue to face financial losses
Victoria Beckham's fashion and beauty label cut its net losses during the 2021 financial year and the designer and her husband, David Beckham, paid themselves just over £8 million during the period due to the success of the brand's parent business.
The powercouple, David and Victoria Beckham, paid themselves £8.1 million from their business empire after an increase in revenues and profits driven by a string of commercial deals, which are booked separately from revenue. Beckham Brand Holdings (BBH) paid £6.3 million in dividends to the couple during the period, plus a further £1.8 million.
The umbrella company accounts covered the managing and licensing of the David Beckham business and brand, its investment in Victoria Beckham’s lossmaking fashion and beauty business, and a stake in Inter Miami. BBH reported net profits of £19.1 million on revenues of £34.3 million in 2021, up from £11.6 million and £11.4 million the year before.
Victoria Beckham's namesake brand revenue grew by 13% to £40.9 million and it cut net losses from £8.6 million to £5.8 million.
The company, which is co-owned by the Beckhams and private equity firm NEO Investment Partner, credited this reduction in losses to improved management on spending in areas including fabrics, freight and IT contracts and acknowledged that Victoria Beckham Beauty helped its sales performance during this period. Beckham first launched her fashion label in 2008 and later founded Victoria Beckham Beauty in 2019.
Despite the increase in sales and a reduction of day-to-day costs, the accounts warned that “further support will be required from its shareholders”.
CEO Marie Leblanc commented: “We have entered a new chapter and our energy is focused on accelerating growth and taking the brand to its full potential.”