// Stella McCartney saw profits drop 219%
// It made a loss of £10.8 million in the year to December 31, 2018
Stella McCartney has reported a drop in profits for the year to December 31, 2018.
The luxury retailer’s operating profits plunged by 219 per cent – equating to an operating loss of £10.8 million during the period, according to files registered at Companies House.
The business had made an operating profit of £9.1 million in the previous year, but profits were wiped out as costs increased.
The eponymous label said the gain was as a result of corporate reorganisation which saw McCartney buy out luxury goods conglomerate Kering’s stake in the business.
Despite the operating loss, sales were broadly flat, up 0.2 per cent year on year to £42.6 million.
In the year since the results, Stella McCartney began a partnership with Louis Vuitton owner LVMH.
The retailer will retain creative control and a majority of shares, but LVMH will assist in the development of the business and its strategy.
McCartney, who does not use leather or fur in her designs, said the retailer “will remain faithful to its long-lasting commitment to sustainable and ethical luxury fashion”.
“Social responsibility is at the heart of the business. We are committed to promoting labour standards and protecting human rights in all parts of the business.”
Last year, Stella McCartney poached the general director of Moschino, Gabriele Maggio, as its chief executive.