Vivienne Westwood Limited recently released its full-year results for 2019, showing that despite the ongoing crisis, the company remains confident in its ability to weather the storm. While these figures were compiled before the onset of Covid-19, Vivienne Westwood Limited believes it has the resilience to continue operating successfully.

In 2019, the company experienced a stronger year compared to previous ones. Turnover increased from £38.7 million in 2018 to £46.3 million in 2019. The gross profit margin also saw a slight improvement, rising to 53.8% from 53.5%. Pre-tax profits reached £2.7 million, a significant improvement from the pre-tax loss of £2.5 million in 2018, and the final profit for the year amounted to £1.83 million, in contrast to a loss of £4.8 million in the preceding year.

Despite these positive figures, Vivienne Westwood Limited recognizes the challenges it faced in 2019. Cash flow from operations declined, partly due to a marketing contribution to related parties. However, the company highlights several encouraging factors within the results report. The 19% increase in turnover, along with a 10% rise in retail sales and a 59% growth in wholesale, demonstrate positive trends. Nevertheless, the rise in cost of sales by 19% limited the growth in gross margin. The company attributes this margin pressure to broader retail conditions. In response, Vivienne Westwood Limited has been reviewing its pricing strategy to enhance gross profit margins, which will continue in the future.

Vivienne Westwood Limited primarily conducts its business through physical retail stores and wholesale channels, but it recognizes the importance of investing in its website to enhance brand messaging and improve the customer online experience. The company aims to drive more business to its website through focused marketing efforts.

Despite the impact of the Covid-19 pandemic, Vivienne Westwood Limited assures stakeholders that it has the necessary resources to continue operating. The company’s ability to trade online throughout the crisis and retain its employees can be attributed to its overall strength and the support of UK government job retention measures. Vivienne Westwood Limited remains cautiously optimistic, relying on its cash reserves and effective cash flow management to mitigate any significant repercussions.

Overall, Vivienne Westwood Limited’s 2019 results demonstrate a positive trajectory for the company. Its commitment to adapting its pricing strategy, investing in its online presence, and leveraging its financial resources bodes well for its continued success in the fashion industry. Despite the current challenging times, Vivienne Westwood Limited remains confident and showcases its resilience and determination to thrive in the face of adversity.

Useful links:
1. Vivienne Westwood Official Website
2. Campaign Live – News, insights, and analysis for the marketing and advertising industry