Victoria Beckham’s fashion label continues to be loss-making, but losses are narrowing as sales rise, new accounts to be filed with Companies House will show.
The 14-year-old company has made a loss for nine years and its accounts come with another warning from its auditors about its future.
But there are few fears the business will pass with its wealthy owners – who include Victoria and David Beckham plus Neo Investment Partners – understood to be ready to support the company with further cash injections, although no specific commitment has been made to this front. .
The loss for 2021 widened to £5.9m – better than last year’s £8.6m deficit – while sales rose 14% to £41m.
Last year was plagued by the pandemic both with its wholesale operation and its main suffering in London.
CEO Marie Leblanc also said the bottom line was helped by strong beauty sales as the business expanded into this key growth area. She added that the figures for 2022 will be stronger with the firm very focused on “the new chapter and … accelerated growth”.
A Companies House filing for DB Ventures also showed that Victoria Beckham’s highest paid director received £2.1m a year, that person is believed to be David Beckham. Both David and Victoria Beckham received £6.3m in dividends from the holding company.
The couple have very extensive business interests and operate through several companies. Reports also said that Beckham Brand Holdings, which controls their business empire, saw net profits of £10.1m for the year on revenues of £34.3m. The figures for the previous year had been profits of £11.6m on sales of £11.4m, the widest profit figure due to investment income generated by partnerships.
David Beckham has huge global earning power, including his recent controversial deal to promote Qatar. In early 2022, Authentic Brands Group reached a co-ownership deal for Beckham’s global brand and he became a shareholder of ABG.
He also has a long-standing sponsorship deal with Adidas, Tudor watches and other brands.
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