Jan 9, 2023
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Victoria Beckham full results filing shows strong signs of improvement

Jan 9, 2023

Victoria Beckham released some details about its latest set of accounts last week, but now that the full accounts report has been filed at Companies House, we can see some more detail around what happened in its latest financial year.

VICTORIA BECKHAM - Spring-Summer2023 - Womenswear - France - Paris - © ImaxTree

And while reports of the results a week ago, tended to focus on the fact that it's making ongoing losses, the accounts for 2021 do show signs of improvement, with the company also talking about positive expansion continuing into 2022.

The accounts for Victoria Beckham Holdings Ltd for the 12 months to the end of 2021 marked a return to sales growth with revenue up 13% to £40.9 million. That was good news, and more than reversed, the 6% drop in revenues of the previous year. 

At the same time, it said cost discipline and the successful implementation of a new model in the Victoria Beckham Fashion business in Q4 2020 contributed to a reduction of costs as a percentage of sales by as much as five basis points.

Operating losses narrowed from £6.8 million in the previous year to £3.9 million in FY21 as the gross margin rose to 68% from 61%. The margin improvement came through tighter supply chain management, revenue shifting towards direct-to-consumer channels and the implementation of the new business model.

It was also the second consecutive year in which the company "significantly improved" its results and EBITDA losses contracted sharply to only £2 million versus a loss of £5.2 million in 2020.

The final net loss for the year was £5.8 million, better than a loss of £8.5 million in the previous year.

The company rolled out a full brand repositioning in the first half of the year with its main line and its younger ‘Victoria’ brand being merged into one cohesive line. It presented its first collection of the merged brand for pre-SS22 in July of that year, and said the successful repositioning led to double-digit growth in three consecutive wholesale fashion campaigns.

And it added that Victoria Beckham Beauty has continued to grow revenues for make-up and skincare since its launch in October 2019. During the year covered by the accounts, the business expanded its footprint, opening a UK warehouse and also opening in New York department store Bergdorf Goodman in autumn of that year. Its website also added Australian and Canadian storefronts, which was important in order to grow the business in these “top-performing markets”.

Importantly too, the business continued to show double-digit growth across all channels in 2022. It said it has been adapting its logistics and sourcing models to the ongoing worldwide supply chain challenges and this has allowed it to absorb the longer lead times while keeping price points stable. 

The Fashion business is also accelerating its geographic expansion with new customers in Europe and the Middle East and the brand has been expanding into new product categories, launching leather goods and the VB Body line in 2022. 

Meanwhile, Beauty also added new lines in skincare and make-up in 2022 and continued to celebrate its "innovative skincare collaboration" with Augustinus Bader. However, its profitable growth required a cash injection of £2 million for investment in stock since the year end.

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