Victoria Beckham’s Business Thrives Despite Luxury Spending Downturn

Victoria Beckham’s fashion and beauty brand has defied the wider downturn in the luxury sector, with sales soaring last year.

Victoria Beckham Ltd, owned by the pop star and designer, also reduced its losses for the year, thanks to high demand for its premium beauty products, according to newly released accounts.

In 2023, the company recorded an operating loss of £0.2 million, a notable improvement from a £0.9 million loss the previous year.

This rise in profitability was driven by growth across its three main business segments: wholesale, online, and its flagship retail store in Mayfair.

Total revenues experienced a significant 52% jump, reaching £89.1 million for the year, up from £58.8 million in 2022, the accounts revealed.

Business leaders attributed the growth to strong demand for beauty products, marked by the launch of Victoria Beckham’s first self-titled fragrance collection during the year.

Marie Leblanc, Chief Executive of Victoria Beckham Ltd, commented, “Having successfully repositioned the business, 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.”

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

This announcement comes just a week after Victoria Beckham revealed she would be starring in a “behind-the-scenes” Netflix series about her business endeavors.

Victoria Beckham launched her business in 2008, with offices in London and New York. In 2017, she sold a stake to private equity firm NEO Investment Partners for around £30 million.

David Belhassen, founder of NEO, remarked, “In the context of a difficult environment, the Victoria Beckham group has sustained its very high growth, with over a 50% year-on-year revenue increase in 2023 and improving EBITDA profitability.”

“The team is working hard to continue building the House of VB on ever stronger foundations,” Belhassen added.

Source: PA Archive