Victoria Beckham Brand Sales Climb, and Losses Shrink, in Fiscal 2021
LONDON — Revenues are climbing, and losses are shrinking, at Victoria Beckham Holdings Ltd., according to 2021 filings set to be published on Companies House, the official register of U.K. businesses.
In the year ended Dec. 31, 2021, Victoria Beckham Holdings Ltd., which is owned by Beckham, her husband David, and the private equity investor NEO Investment Partners, saw revenues jump by 13 percent to 40.9 million pounds.
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Losses before interest, taxes, depreciation and amortization more than halved to 2 million pounds compared with the previous year, while operating losses fell to 3.9 million pounds from 6.8 million pounds.
The company attributed the 2021 performance to its decision to consolidate and reposition the fashion collection, and to “accelerated growth” in the beauty business.
The filing did not break out beauty sales, but noted the business expanded its footprint by opening a U.K. warehouse and striking a deal with Bergdorf Goodman in fall 2021. The beauty website added Australian and Canadian storefronts, growing the business in those top-performing markets.
The company added that fiscal 2022 was set to be an even stronger year, forecasting double-digit sales growth driven by geographic expansion, the launch of leather goods, new products in beauty, and a strong spring 2023 show in Paris.
Chief executive officer Marie Leblanc said 2021 “saw the successful turnaround of Victoria Beckham Ltd. We have entered a new chapter for the business, and our energy is focused on accelerating growth and taking the brand to its full potential. With the successful launch of leather goods in 2022, and the continuous acceleration of sales growth in beauty, we have high expectations.”
Leblanc added that over the past few years the business “has had its challenges. We had to rethink our brand value proposition and make important changes, like merging the two brands (Victoria Beckham and the secondary line VVB) into one. We have created a distinctive position in the market with signature design that reflects Victoria’s lifestyle and are at the entry price of luxury.”
She said the business is ready to fulfill its potential with “the reiterated support of our shareholders and our chairman Ralph Toledano. I believe we can reach new heights,” Leblanc said.
The Companies House report said shareholders see great potential in the business and will continue to fund its growth.
In 2021, despite closures due to lockdown, all three Victoria Beckham channels — wholesale, online and store — performed well, both in fashion and beauty. During the period it also reorganized its end-to-end processes, stretching from sourcing and manufacturing to the end consumer.
A separate filing on Companies House showed that Beckham Brand Holdings Ltd., the holding company that pays dividends to its shareholders Victoria and David Beckham, also had a strong year in 2021.
Beckham Brand Holdings comprises the management and licensing of the David Beckham business and brand, investment in the Victoria Beckham global fashion and beauty brand and ownership participation in the Major League Soccer club Inter Miami CF.
The holding company reported that 2021 revenues tripled to 34.3 million pounds from 11.4 million pounds, while profits after tax rose 65 percent to 19.1 million pounds, due entirely to David Beckham’s commercial and sponsorship ventures.
The group paid 6.3 million pounds in dividends to the couple, while a further 1.8 million pounds in dividends were paid post yearend.
In a further Companies House filing, David Beckham Ventures Ltd., which comprises Beckham’s commercial and sponsorship ventures, boosted revenue to 34 million pounds in 2021, up from 11.4 million pounds in 2020. Net profits increased to 19.6 million pounds from 10.6 million pounds in 2020.
The company and its subsidiary, Seven Global LLP, secured further new contracts in the period and widened its portfolio of product categories. It includes sports, media and entertainment, automobile, fragrance, eyewear, luxury brands and financial services.
In 2020, Beckham signed three new brand contracts with Maserati, EA Sports and GEM forex, adding to his long-term roster of Adidas, Tudor, Sands, Diageo (Haig Club whiskey) and Panini, among others.
Alongside this brand partnership activity, Beckham continues to build and support Inter Miami CF.
The company said Beckham’s commercial and licensing business and its associated brand marketing activities have proven to be successful in generating long-term revenue streams.
Beckham’s online presence is one of the largest in the world, with 138 million followers and 9 billion annual impressions across Instagram, Facebook and China-specific channels Weibo and Douyin.
In the U.K., he is among the most followed and engaged individuals on social media, while his profile on Chinese platform Douyin has the highest engagement of any international account.
Following the launch of his strategic partnership with Authentic Brands Group in February 2022, the company said it is “well-positioned to develop the brand and licensing business further throughout 2023.”
The company said ABG’s support will help to unlock further growth through a number of avenues including strategic endorsements, innovative business models, digital and media partnerships and new consumer products.