Fashion brand Victoria Beckham has been suffering heavy revenue loss. As of 2018, the company’s losses have increased by nearly 20%, or £12.3 million (nearly VND 400 billion).
Recently, Victoria Beckham and her husband paid a dividend of up to £38 million despite the company’s profits falling by nearly 90%. Former English footballer and business partner Simon Fuller paid out himself a dividend of $21.5 million (nearly VND 500 billion) and £ 10.3 million (VND 308 billion) in May this year (according to the report). announced by Beckham Brand Holdings). In addition, Beckham, Fuller and private equity firm Neo Investment Partners also spent an additional £13.5 million into Victoria’s company to help keep it afloat.
Although the former Spice Girls’ luxury fashion brand, which has more than 400 stores worldwide, including two main stores in London and Hong Kong, has offset losses of around £35m since it was founded in 2008. , but financial problems are always present. The company has laid off more than 20 staff and moved its main office to Hammersmith in West London. Among those who have left is Paolo Riva, chief executive officer for just 10 months.
Ralph Toledando, president of the business, said sales of the brand’s clothing and accessories stalled in 2018 after years of growth. In an interview at Business of Fashion, he said: “The shows went as expected. Our goal is to reach profitability as soon as possible.” He always makes efforts and tries to add value to the brand.
“I firmly believe that destiny is in our hands. The company has a genius like Victoria, we believe we can do it.” The company also said that retail sales have actually doubled in the UK, but the current challenges are affecting retailers and leading to a steep decline in international markets.
Although sales have increased in certain business segments, losses are still decreasing significantly in 2019. They also expect the company to turn a profit in the fourth quarter of 2020.
Looking back on the days when she started out with just three members and launched a small collection inspired by the items former singers loved to wear, the Victoria Beckham brand has grown to a level of sharpness that is not inferior to other singers. Her seniors are Donna Karran and Phoebe Philo, creative director at Celine as of last year.
This is the natural trajectory for luxury brands, said Nicla Di Palma, an analyst at Brewin Dolphin Securities. These brands always start with a loss due to start-up, promotion and other expenses for several years until they scale globally – and Victoria Beckham is no exception.
