Victoria Beckham fashion empire on course to bank a profit

Victoria Beckham’s fashion empire is on course to bank a profit this year having been supported by the family’s other, more lucrative, income streams for a decade.

Sales at Victoria Beckham Ltd, which the pop star-turned-fashion designer set up in 2008 while her husband, David, was playing for LA Galaxy, rose 52 per cent last year to £89.1 million, from £58.8 million in 2022.

It was the third consecutive year of double-digit revenue growth, with “substantial” increases seen both online and at the Victoria Beckham store in Mayfair, central London.

An £850 gathered-waist midi dress was among the best-selling products last year, accounting for 10 per cent of online sales. Belts, which sell for up to £250, was the fastest-growing category.

“2023 was another very strong year of progress for the company and we continue to see a healthy growth trajectory as we look to establish Victoria Beckham as a global luxury house,” Marie Leblanc, chief executive, said.

“We continue to build a loyal consumer following on the back of successful Paris Fashion Week shows and new partnerships, with performance across direct-to-consumer channels and leather goods being particularly positive.”

Victoria Beckham, 50, has frequently been teased for her loss-making fashion venture, which has racked up tens of millions of pounds of losses over the past 16 years. Victoria and David are the majority shareholders; Simon Fuller, the duo’s long-term manager, and NEO Investment Partners, the London private equity fund, are the other shareholders.

Since her promotion to chief executive five years ago, Leblanc, the French retail executive, has been trying to turn the business around. Under her leadership, Victoria Beckham has focused on a single, ready-to-wear collection. It has also moved into leather goods, watches and, most recently, beauty.

Despite the rise in sales last year, Victoria Beckham still fell to an operating loss of £200,000 in 2023, although that was an improvement on the £900,000 loss it recorded in 2022. It also marks the fourth straight year of narrowed operating losses as Victoria Beckham “delivers on its plan for profitability”. In 2019, its operating loss totalled almost £16 million.