Stella McCartney has released its financial results for the year ending December 2021, revealing a 14% rise in revenues to £32.5 million. However, it is important to note that the company has been undergoing a transformation program since 2020, which impacts the recognition of revenue.

The increase in revenue was primarily driven by “profit split income from group undertakings,” totaling £12.2 million, compared to £2.1 million the previous year. Excluding transactions with fellow group companies, sales amounted to £16.1 million, down from £23.8 million.

Physical store sales experienced a 26% growth, reaching £4.97 million. In contrast, sales through the company’s own webstore declined by 78% to £2.3 million due to changes in the operating model. E-commerce revenue is now recognized as part of Stella McCartney Italia SRL.

The company also reported a larger loss before tax of £32.7 million, compared to the £31.4 million loss in the previous year. The net loss for the year was also £32.7 million, compared to a net loss of £30.4 million in 2020.

In addition to the company’s transformation, 2021 witnessed other significant changes. The launch of the Frayme bag and the collaboration with Japanese artist Yoshitomo Nara contributed to increased media impact for the brand throughout the year.

Stella McCartney further solidified its commitment to sustainability and actively participated in the COP 26 conference. The brand also played a role in the development of the innovative, fungi-based material known as Mylo.

The company decided to bring its digital operations in-house, previously managed by Yoox Net-A-Porter. However, revenue management was transferred to the Italian arm of the business.

Additionally, the brand’s kidswear transitioned to a licensing model for the spring 22 collection in partnership with Simonetta Spa.

Despite the challenges faced by the company, Stella McCartney remains dedicated to its reinvention and is well-financed. The shareholders, led by Stella McCartney herself, are fully committed to the success of the business. McCartney had entered into a partnership deal with LVMH in 2019, ensuring she retained control of the company after parting ways with her previous backer, Kering.

Useful links:
Stella McCartney Official Website
COP 26 Conference Official Website