Victoria Beckham’s fashion label is now losing £10.2million a year, it was revealed today.
The ex-Spice Girl’s luxury clothing, glasses and accessories business recently celebrated its 10th anniversary – but losses have increased by £2million in the past 12 months.
The label’s loss, worth around £27,000-a-day, came despite revenues growing 17 per cent to £42.5million in 2017.
The fashion label, which has a flagship store in Mayfair, London and sells items such as coats for up to £2,900 each, posted an £8.4million loss in 2016.
But experts believe Mrs Beckham, who is worth an estimated £240million, can expect to turn a profit in the ‘medium term’.
The fashion label belonging to Victoria Beckham, pictured left after her London Fashion Week show, right, has lost £10.2million the last year
Victoria has been supported at label events by her husband David, 43, and children Harper, seven, Romeo, 16, Cruz, 13, and Brooklyn, 19 (pictured left to right)
The mother-of-four oversees an empire comprising four clothing lines, more than 400 retail outlets in over 50 countries and offices in London and New York.
At the outset the longtime fashionista, faced a daunting challenge: convincing a competitive and demanding industry that she could make a lasting impression on fickle fashion fans.
Seizing the opportunity to surpass her status as a pop star she has gradually earned widespread recognition, even from fashion luminaries such as Karl Lagerfeld, the creative genius behind Chanel.
Last year sale increased across all areas, especially in her ready-to-wear ‘Victoria Beckham’ line, its sister ready-to-wear ‘Victoria, Victoria Beckham’ line as well as accessories and eyewear, both online and in-store.
Victoria Beckham Ltd said last year the company ‘continued to invest in the business and build its talent base’, maintaining that its shareholders are committed to reducing its loss and expect to break even in the medium term.
Last December, NEO Investment Partners invested £30 million in the business to grow the company’s digital operations and bricks-and-mortar stores.
The company has redesigned its website, invested in its distribution capabilities – now shipping to more than 120 countries, and recently announced a long-term global licensing deal for its eyewear products with Marchon.
NEO is a shareholder in the company along with Beckham Brand Holdings, which is owned by Victoria and David Beckham and XIX Entertainment.
The company said that despite a ‘difficult trading environment’ it has been investing for its future growth and building its leadership team.
David Beckham posted this photo of the fashion week show’s after-party with their son Brooklyn toasting them behind
Sales on Victoria’s website (pictured) are up across the board with the label’s revenues now reaching £42.5million – but still not enough to turn a profit
In March, the company appointed industry veteran Ralph Toledano, who is currently president of the French tarde body Federation de la Haute Couture et de la Mode, as chairman joining Paolo Riva who was appointed chief executive in September.
Mr Riva said: ‘We will continue to invest in growth markets such as the US and Asia whilst also ensuring we have the right strategy to ensure profitability over the medium term.
‘I look forward to working with Victoria and team to steer the brand to the next phase.’
The company trades from its website, flagship store in Mayfair, London and in Hong Kong as well as from 400 stockists in over 50 countries.
Last week Victoria looked far from comfortable as she stepped out in a sheer top and bra as temperatures hovered just above freezing.
The designer was pictured in the barely there mesh top from her own collection, which showed her black lingerie underneath as she attended the Haig Club House Party in Notting Hill, West London.
The star, 44, who almost always wears items from her own brand, was joined by her son Brooklyn, 19, sister Louise Adams, 34, and husband David, 43, who is brand ambassador for whisky firm Haig Club.
Mrs Beckham’s top is from her latest collection and is available from her website for £565.
Speaking to British Vogue about her collection last year, the mother of four said: ‘For me and my customer, what I believe is that she wants to feel secure and comfortable.
‘For me, it was also looking at my heritage: you can see we’ve got heritage fabrics here in the houndstooth and tartan. British – but with a global outlook.’