Victoria Beckham‘s namesake fashion label reported a loss increase of 78.4 percent for the financial year to December 31, 2016, after it invested “heavily” in design, production, marketing, and sales.
Losses increased from 4.7 million pounds in 2015 to 8.4 million pounds to December 2016, as revenue slipped 1.4 percent to 36.3 million pounds according to accounts filed with Companies House. The company reported an 8.5 million pound loss after tax, which is close to double the 4.8 million pound loss from the previous financial year.
However, Victoria Beckham’s directors are positive its long-term plans will ensure the brand continues to grow. In addition to its successful collaboration with Estee Lauder, the fashion label launched its new partnership with Target as well as a global licensing deal with Reebok this year, which will “further enhance the future profitability of the business.”
In addition, the fashion company recently received a 30 million pound investment from private equity firm Neo, which acquired a minority stake in Victoria Beckham and valued the fashion label at 100 million pounds.
The fashion label continues to invest in strengthening its four product categories as well as investing in its long-term growth. Victoria Beckham’s growth plan is supported by the label’s founder, her business partner and husband David Beckham as well XIX Management, who are the shareholders of the label’s parent company.
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