Victoria Beckham is on the path to profitability

Victoria Beckham's brand is reportedly on the path to profitability, with accounts revealing a surplus of 200,000 pounds. According to data published by the Daily Mail, revenue was up 43 percent to 58.8 million pounds in 2022 compared to 40.9 million pounds in the previous year. Operating losses were already declining in the past few years, and fell from 2.2 million in 2021 from 4.2 million in 2020 pounds. The full set of accounts for Victoria Beckham Ltd is expected to be published in January 2024.

Despite reporting a positive earnings figure, the fashion and beauty business is believed to have incurred a pre-tax loss of 3.1 million pounds in 2022, despite a 43 percent increase in revenue, reported the Telegraph.

The brand’s beauty arm, which features a popular 30 spounds signature eyeliner, has experienced steady growth. Victoria Beckham's makeup tutorials on Instagram and TikTok have contributed to her significant social media following, bolstering sales. In the fashion business, sales growth has been driven by popular items such as handbags and leather range, including the coveted "chain pouch" bag, retailing from 890 to 1,550 pounds.

Earlier this month, Victoria Beckham expanded its retail presence with a shop-in-shop in Galeries Lafayette, marking the brand's third store in Paris.

In the company's accounts filed in January 2023, auditors cautioned about liquidity risks without additional financial support from shareholders, which include the Beckhams and private equity firm Neo Investment Partners.

Currently, the company boasts seven active directors, with CEO Ralph Toledano at the helm.