Victoria Beckham’s business turns profitable after years of losses

Victoria Beckham’s fashion business has finally turned a corner after years of losses, according to recent reports.

The company was in the red to the tune of £53.9m last year, with £29m owed to the Beckham’s other ventures. However, after the success of her make-up range as well as sought-after bags, belts, and sunglasses, the artist formerly known as Posh Spice is said to be back in the black.

Revenues are up by a huge 42 per cent to £58 million, according to David Belhassen, the brand’s investor, who spoke to Women’s Wear Daily (WWD).

Belhassen predicts that when the business files accounts for the 2022 financial year in December, critics of Victoria will be forced to eat crow.

This news is certainly a turnaround from three years ago when Victoria’s fashion line and the make-up firm lost £6.6 million in 2020. In 2019, it racked up £15.6m in debts.

Belhassen’s interview shines a rare spotlight on the brand VB, providing insight into the company’s recent successes.

A spokesperson for Victoria confirmed the figures for her fashion label, which sells £500 jumpers and £400 jeans, were accurate.

The pandemic has had a significant impact on the fashion industry, and Victoria Beckham Holdings group was no exception.

Total revenues for the group fell 6% to £36.1m due to the pandemic’s effects. However, the group responded to the pandemic quickly, controlling its cash and expenditure, which led to a significant reduction in its operating losses by 57%.

Cost efficiencies across the business and the recalibration of its business model to make it sustainable for the long term were among the factors that contributed to the reduction in losses.

Despite the pandemic’s impact, Victoria unveiled her latest collection at Paris Fashion Week this month. The designer was joined by her husband David and children Brooklyn, Cruz, and Harper. Also in attendance was Posh’s daughter-in-law Nicola Peltz.

Rumours of a feud between the women have been circulating ever since the billionaire’s daughter tied the knot with Brooklyn last year.

Reports initially suggested the pair were at war over Nicola’s wedding dress, after she wore a custom Valentino gown instead of one designed by her mother-in-law. However, Nicola explained to Variety last summer that the dress decision came down to logistics and nothing else.

Victoria Beckham’s fashion business’s recent turnaround is undoubtedly positive news for the former Spice Girl turned designer.

The pandemic has been tough for the fashion industry, and Victoria Beckham Holdings group has shown resilience in the face of challenging circumstances.

With revenues up by 42%, the brand looks set to continue its upward trajectory in the years to come.

Main Image: Victoria & David Beckham/Yahoo

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