// Victoria Beckham’s fashion and retail business widens losses by 20% to £12.3m
// It said performance was in line with expectations after cutting costs, focusing on digital channels & refining products
Victoria Beckham has seen losses deepen last year, amid waning demand for the former Spice Girl’s high-end fashion range.
Victoria Beckham’s fashion brand and retail business saw losses grow 20 per cent to £12.3 million for the year to December 2018 as it said demand “plateaued”.
The company, which has not made a profit since it was formed in 2008, saw sales dive due to weaker wholesale demand.
READ MORE:
- Victoria Beckham promotes MD of product to CEO
- Victoria Beckham to ban exotic skins in its designs
- Victoria Beckham losses grow to £10.2m
Victoria Beckham chairman Ralph Toledando said sales of its clothing and accessories stagnated during 2018 after years of growth.
“The performance was in line with expectations, so we were not surprised,” he told Business of Fashion.
“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.”
Victoria Beckham’s is controlled by Beckham herself as well as her former England footballer husband David, through their Beckham Brand Holdings company.
The retailer and brand’s performance was in line with shareholder expectations after “cutting costs, focusing on its digital channels and refining the product to more closely reflect Victoria Beckham’s aesthetics and values”, the business said in the newly-released Companies House accounts.
It added that wholesale revenues grew by double digits in the UK, but “current challenges affecting department store retailers” resulted in a decline in international markets.
Sales have increased in certain segments of the business while losses have “significantly reduced” in 2019, the company said.
Victoria Beckham said it expected to become profitable in the fourth quarter of the year and has an increased wholesale order book for 2020.
Click here to sign up to Retail Gazette‘s free daily email newsletter
