Victoria Beckham’s fashion label has slid into the red despite a 17 per cent rise in sales.
The former Spice Girl’s company, Victoria Beckham Limited (VBL), will file accounts this week that reveal an operating loss of US$12.9 million in the year to December 2017, widening from US$10.4 million the previous year. Revenues rose to US$53.8 million.
Details of dividends paid to Beckham and her husband, former international footballer David Beckham, are expected to be revealed later this week when the couple’s joint company also files its accounts.
Losses widened for VBL despite the success of Beckham’s limited-edition range with the American high-street chain Target and a make-up line with Estée Lauder.
Sales rose at the main Victoria Beckham ready-to-wear range, which celebrated its 10th anniversary this year, with its first show at London fashion week, as well as accessories and eyewear.
The company raised US$38 million a year ago from NEO Investment Partners, which has also backed the British designer Tom Dixon, the French bakery Paul and the Italian leather goods firm Valextra.
View this post on Instagram
A post shared by Victoria Beckham (@victoriabeckham) on Dec 18, 2018 at 4:35am PST
Against a difficult trading environment this year, VBL said it had been “investing for future growth and building its senior leadership team”.
A statement said shareholders were committed to helping the brand break even in the medium term by cutting costs as well as driving growth.
Since NEO came on board, the company has appointed Paolo Riva – a former boss of Diane von Furstenberg – as chief executive alongside the chairman, Ralph Toledano, a fashion industry veteran who brought the designer Phoebe Philo to Chloé.
Riva, who joined in September, said: “We will continue to invest in growth markets such as the US and Asia while also ensuring we have the right strategy to ensure profitability over the medium term.”