Victoria Beckham has released its full accounts report, giving more insight into the company’s financial performance in the latest fiscal year. While initial reports focused on losses, the 2021 accounts show signs of improvement and positive expansion for the brand.

In the 12 months ending in 2021, Victoria Beckham Holdings Ltd saw a return to sales growth, with revenues increasing by 13% to £40.9 million. This growth more than made up for the 6% decline in revenues from the previous year. The company also made efforts to reduce costs as a percentage of sales, leading to a reduction in operating losses from £6.8 million to £3.9 million in FY21.

One of the key contributors to the improvement in financial performance was the successful implementation of a new business model in Victoria Beckham Fashion. This, along with cost discipline, resulted in a rise in gross margin from 61% to 68%. The company also saw a significant decrease in EBITDA losses, from £5.2 million in 2020 to just £2 million in 2021.

Although the company still recorded a net loss of £5.8 million for the year, this was an improvement from the previous year’s loss of £8.5 million. In the first half of 2021, Victoria Beckham underwent a brand repositioning by merging its main line and the ‘Victoria’ brand into one cohesive line. This repositioning led to double-digit growth across three consecutive wholesale fashion campaigns.

Victoria Beckham Beauty, the company’s makeup and skincare line launched in 2019, continued to see revenue growth. The business expanded its presence by opening a warehouse in the UK and securing a spot in New York department store Bergdorf Goodman. It also added storefronts in Australia and Canada to target growth in these markets. In 2022, the company experienced double-digit growth across all channels and made adjustments to its logistics and sourcing models to overcome global supply chain challenges.

In addition to geographical expansion, the Fashion business ventured into new product categories, introducing leather goods and the VB Body line in 2022. Victoria Beckham Beauty also expanded its skincare and makeup offerings and maintained its partnership with Augustinus Bader for skincare collaborations. However, the company required a £2 million cash injection after the year-end to support its growth and stock investment.

Overall, the latest accounts report from Victoria Beckham shows positive signs of improvement and expansion for the brand. The successful repositioning, geographic expansion, and product diversification efforts have contributed to revenue growth and narrowed losses. Despite challenges in the fashion industry, Victoria Beckham remains optimistic and committed to its continued growth and success.

Useful links:

1. Victoria Beckham Official Website
2. Bergdorf Goodman