Vivienne Westwood Limited, the renowned fashion label established by the iconic designer Vivienne Westwood, experienced substantial growth in 2022, despite the unfortunate passing of its founder later in the year. The company demonstrated its increasing strength and potential in its annual accounts. With its four clothing labels, leather goods, jewelry, soft accessories, and homewares, the fashion brand reported a remarkable 53% increase in turnover and gross profit. Revenue soared to £101.3 million, while gross profit reached an impressive £61.9 million. Both operating profit and pre-tax profit also experienced a substantial rise, increasing from £19.8 million to £38.4 million. Net profit also saw a significant surge, escalating from £15.2 million to £30.89 million.

Moreover, the company’s cash flow from operations witnessed substantial growth, rising from £6.9 million in the previous year to an impressive £16.9 million in 2022. Physical store sales observed a notable 65% year-on-year increase, while e-commerce sales saw a 39% surge. Vivienne Westwood took the proactive step of bringing its e-commerce operations in-house, completing the transition in September 2023, with the aim of further enhancing its operations. Additionally, the company experienced an impressive 80% year-on-year rise in wholesale.

Despite maintaining a steady gross profit margin of 61%, Vivienne Westwood acknowledged the persistent margin pressure stemming from challenging retail conditions. In response to this, the company implemented a strategy of reviewing pricing to improve its gross profit margins, a tactic it intends to continue moving forward. Despite such challenges, Vivienne Westwood maintains its ability to attract a broad customer base, and remains dedicated to improving existing stores and clarifying the brand’s position by streamlining its portfolio.

Furthermore, Vivienne Westwood has ambitious plans to strengthen its presence in emerging markets, such as China and the US, while also aiming to increase its market share in Europe, particularly in France, Italy, and Germany, as well as Asia. The brand consistently prioritizes sustainable sourcing of materials and components, with over 90% of the non-blended virgin cotton jersey used in its collections being made from certified organic yarns. The company aims to further increase this percentage in the future. Vivienne Westwood is also committed to sustainability initiatives, being part of the Canopy Style initiative, which strives to use only FSC certified viscose. Although the target has not been fully met, currently over 95% of the non-blended viscose used in the company’s collections is FSC certified. Furthermore, Vivienne Westwood has eliminated plastic from its retail packaging and is actively working towards removing single-use virgin plastic from its transit packaging, among other eco-focused initiatives.

With its strong financial performance in 2022, along with its dedication to sustainability and expansion into new markets, Vivienne Westwood Limited is well-positioned for continued success in the future.

Useful Links:
1. Vivienne Westwood Official Website
2. Canopy Style Initiative