Victoria Beckham’s fashion and beauty business narrowed its losses last year as sales rose 52% to £89 million.
The company said increased online sales, via its Mayfair flagship store in central London and wholesalers, had helped it cut its losses to £200,000 in 2023 from £900,000 a year earlier.
Victoria Beckham’s sales growth comes after private equity group NEO invested £30 million for a significant, undisclosed minority stake in 2017, and has since revamped the brand, including expanding into leather and beauty products.
After a tough 2022, Victoria, her husband David, a former England footballer, and NEO have pumped in £6.9 million to keep the business afloat.
Its expansion into new product categories last year helped Beckham outperform many struggling luxury brands as rising interest rates and China’s economic slowdown hit the market.
Fashion competes with travel and other experiences for a share of household budgets.
The former Spice Girl launched her first fashion collection in 2008 and has maintained a high profile, boosted by a capsule collaboration with supermarket chain Mango last year and a hit Netflix documentary about David, with the streaming company also starting a documentary series about Victoria.
Ahead of this summer’s European Football Championship, David Beckham has been appointed an ambassador for AliExpress, an online retail platform owned by Chinese tech company Alibaba.
Earlier this year, he also signed partnerships with suit maker Hugo Boss and air fryer manufacturer Sharkninja, adding links to Tudor watches, Tempur-Pedic mattresses, UNICEF and Nespresso coffee machines, and he was recently featured in an advert for Walkers potato chips.
Victoria Beckham’s best-selling items of 2023 included the gathered-waist midi dress worn by the Queen of Spain and Kendall Jenner, which accounted for one in every 10 online sales in 2023 and remains a best-seller this year.
The brand will launch leather products in 2022, with belts being its fastest-growing category, with demand up 13 times year-on-year.
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Beckham’s beauty line, which launched in 2019, has also seen “significant growth” since branching out into fragrance.
“Having successfully repositioned the business, 2023 marks another very strong year of progress for our company and we remain on a healthy growth trajectory as we aim to establish Victoria Beckham as a global luxury brand,” said Marie LeBlanc, chief executive officer of Victoria Beckham Ltd.
“We continue to balance strong consumer demand with business discipline, paying close attention to ongoing profitability,” said Katia Beauchamp, CEO of Victoria Beckham Beauty.
