- REUTERS/Carlo Allegri
- Losses at Victoria Beckham’s fashion company rose by 78% in 2016, revenue flat.
- Director said deals with US retailer Target and Reebok should “enhance” profitability.
LONDON – Losses at Victoria Beckham’s high-end fashion label jumped by 78% last year as it invested “heavily” in design, production, marketing, and sales.
Losses rose from £4.7 million in 2015 to £8.4 million in the year to December 2016. Revenue remained largely flat at £36.3 million, accounts filed with Companies House show.
Victoria Beckham Limited is a high-end fashion brand that makes clothing, shoes, and accessories. Founded in 2008 by the former Spice Girl, the London-based brand today employs 180 people. Victoria’s former footballer husband David and her former manager Simon Fuller are both shareholders in the business.
The fashion company is a subsidiary of Beckham Brand Holdings, which also represents David’s business interests, and Victoria Beckham Limited’s accounts state that the parent company will continue to stand behind it despite losses. Beckham Brand Holdings made a profit of £16.19 million on revenues of £47.52 million last year.
A spokesperson for the Beckhams said that the rising losses at Victoria Beckham Holdings reflected “investment in design, marketing and sales” and said the accounts
Company director Robert Dodds writes in the accounts that a new partnership with US retailer Target and a licensing deal with Reebok “will further enhance the profitability of the business.”
The accounts, signed off on December 14, highlight a £30 million investment from private equity group NEO Investment Partner in November 2017, after the accounting period. That deal reportedly valued the company at £100 million.
Notes to the accounts also show that Victoria Beckham Limited was restructured and refinanced in 2017. Accounts show that the highest paid director, who is not named, made £700,000 in the year. Victoria Beckham Limited had £4.9 million worth of stock on its books at the end of 2016, up from £3.2 million at the end of 2015.