Victoria Beckham Holdings Ltd - the company owned by one of the former Spice Girls - reported its latest financial results to 31 December 2023 - and stressed that sales were increasing, losses were falling and the group was close to breaking even. back to green.
According to the Financial Times, the fashion business posted a pre-tax loss of £2.9m (€3.45m) in 2023, down from £3.1m (€3.69 million euros) in the previous year.
However, sales still jumped 52% to £89.1m (€105.95m) from £58.8m (€69.92m) in the previous year, mainly due to the strong performance of the store at the company in Mayfair in central London, especially after the brand's foray into cosmetics and leather goods. Sales made through wholesalers also increased.
Online sales were also significantly boosted by the perfume collections and belts were also the fastest-growing category boosted by the new lines. One of the most popular items in 2023 is a midi dress, which sells for £850 (€1,110.73).
The cash investment, which is worth around £6.9m (€8.2m), will be invested in Victoria Beckham's fashion and beauty units and will be provided by her husband David Beckham, herself and Neo Investment Partners, a private equity firm. The company is also partially owned by XIX Management.
Of the new £6.9m (€8.20m) investment, £3.9m (€4.64m) is aimed at increasing Victoria Beckham Beauty stock, and £3m pounds (3.57 million euros) was used for working capital of the company's fashion division.
The brand has been loss-making every year since its launch in 2008, although it has received several cash injections over the years that have been used to pay down debt and support growth. However, results appear to be improving, with loss margins shrinking over the past few years. | BGNES
