Victoria Beckham's fashion label suffers R235m loss

Designer Victoria Beckham. Picture: Reuters

Designer Victoria Beckham. Picture: Reuters

Published Nov 29, 2019

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Victoria Beckham's fashion label suffered losses of £12.3-million (about R235-million)  last year.

The designer's own company - Victoria Beckham Ltd - hasn't made a profit since forming in 2008, and the brand revealed losses grew 20 percent for the year up to December 2018 as demand for the high-end clothes "plateaued".

Chairman Ralph Toledando told trade publication Business of Fashion: "The performance was in line with expectations, so we were not surprised. Our goal is to reach profitability as soon as possible.

"I firmly believe that our destiny is in our hands. We have a great talent in Victoria and, if you take that asset with a dream team, we can do it."

Designer Victoria Beckham after her catwalk show during London Fashion Week Women's A/W19 in London. Picture: Reuters

He explained that sales had stagnated last in 2018 after years of growth.

The company - which is controlled by Victoria and her husband David Beckham through Beckham Brand Holdings - says the performance was in line with shareholders expectations.

In the Companies House accounts, the business said this came after "cutting costs, focusing on its digital channels and refining the product to more closely reflect Victoria Beckham's aesthetics and values".

Wholesale revenues are said to have grown by double digits in the UK, but "current challenges" in the market meant a decline internationally - although certain segments of the business have seen sale increases alongside "significantly reduced" losses.

It's thought the brand can become profitable in the fourth quarter of the year, while the firm has an increased wholesale order book for next year.

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