Victoria Beckham shrinks losses

Victoria Beckham still may not have been able to turn a profit, but she has begun shrinking her losses. Her eponymous label has seen a decline in turnover and shrunk her losses for fiscal year 2020.

Drop in turnover

Filings with the Companies House, the official UK business registry, specified that turnover fell 6 percent to 36.1 million pounds in the 12 months ending on December 31, 2020. Losses after taxes were cut in half to 8.6 million pounds from 16.6 million pounds.

The company’s bottom line was helped by Victoria Beckham Beauty which improve the company’s sales. Their online sales are also strong. While the company did take losses, it was an improved picture given that their business was still affected by the Covid-19 pandemic and global lockdowns.

Victoria Beckham Beauty did 7.3 million pounds for its first full year of trading, up from 1.9 million pounds in 2019.

Gross margins rose to 61 percent from 58 percent. No dividends were paid for 2020. The company was on track for profitability prior to the Covid-19 pandemic but did manage to successfully restructure to reduce losses by tightening their supply chain, consolidating the Victoria Beckham lines under one label, and growing e-commerce.