Vivienne Westwood reports strong FY23, to strengthen presence in key markets

British fashion brand Vivienne Westwood reported strong financials for the year ended 31 December 2023, particularly in the way of turnover, which increased 31.5 percent compared to the year prior, amounting to 133.2 million pounds. This is according to newly filed accounts with the UK’s Companies House, in which the independent fashion house addressed both its financial status and progress among environmental efforts.

During the year, Vivienne Westwood’s gross profit rose 25.8 percent, while its gross margin dropped from 61.1 percent to 54.4 percent over the same period. This was due to an increase in cost of sale, which rose 40.4 percent. Its cash flow from operating activities also increased, rising from 16.9 million pounds in 2022 to 33.2 million pounds in 2023.

Much of this activity could be accredited to wholesale, for which sales rose 48.4 percent compared to 2022. Retail store sales also increased by 28.2 percent. Things were less positive for e-commerce, where sales dropped 30 percent. Notably, the company’s e-commerce platform was the subject of a board analysis between 2022 and 2023, which determined, in light of Brexit and customs regulations, that it was necessary to create two merchants of records: for the UK company and for the rest of the world, which from September 2023 is now managed by Italian subsidiary, Vivienne Westwood SRL.

Building presence in China and the US

In a statement by directors, it was said that the brand continued to “remain attractive to its wide customer base and sales continue to be consistent”. The report continued: “The focus remains on improving existing stores and clarifying the positioning of the Vivienne Westwood brand by focusing the offer through a streamlining of the portfolio of lines.

“The Vivienne Westwood Group still has major ambitions to establish a better presence in relatively new markets such as China and the US, as well as increasing market share in Europe (in particular France, Italy and Germany) and Asia. The policy of closely monitoring expenditures will continue and should maximise profitability going forward.”

Management did note that margins were still under pressure “due to the nature of wider retail conditions, recent geo-political factors and rising inflation”. As such, the company was continuing to review pricing on an ongoing basis in a bid to alleviate pressure. The launch of the new website in 2023 also intends to improve margins, as does its new ERP and warehouse management system, which Vivienne Westwood said continued to enhance the efficiency of the business.

In conclusion, the report said: “Paramount to the company will be to constantly improve the quality of our products as well as working to minimise the company’s environmental footprint in line with our founder’s motto: ‘Buy less, choose well, make it last’.” In this regard, a number of achievements were emphasised by the business, including that in 2023, 83 percent of all cotton from the two seasons was organic.