Business
Victoria Beckham invests millions in fashion empire after £3million loss
Victoria Beckham has injected millions into her fashion and beauty empire after posting a £3million loss in the 2024 financial year, recently filed accounts have revealed.
The former Spice Girl, along with her husband David Beckham and private equity firm Neo Investment Partners, provided a £6.9 million cash injection to strengthen her businesses.
Of this amount, £3 million was allocated to her fashion label to meet working capital needs as it introduces new ranges including belts and bags. A further £3.9 million was invested in Victoria Beckham Beauty to boost stock levels.
Victoria Beckham Holdings, the umbrella company for its luxury fashion and skincare brands, reported a loss of £3 million, a slight improvement on a loss of £3.3 million last year. Despite ongoing financial challenges, sales have increased, with sales up 52% to £89 million last year, compared to £59 million in 2022, £41 million in 2021 and £36 million in 2020. The company’s performance has improved through successful new product lines, including belts, which now account for more than 20% of online sales, and a perfume collection in the beauty division.
David Belhassen, director of the company and founder of Neo Investment Partners, expressed optimism about the future of the company, stating that efforts are being made to ensure that the empire is built “on ever stronger foundations” with a continued focus on the development of high quality products.
Although the wider business is still not profitable, Victoria Beckham revealed earlier this year that her fashion label has become profitable. She said: “We can really start building the house I’ve always dreamed of.” The brand, which started in 2008 with a small collection of dresses, has grown considerably and won the award for best brand at the British Fashion Awards in 2011. Ms. Beckham expanded into beauty in 2019, adding to her portfolio.
Her latest collection, showcased at Paris Fashion Week, was praised for its sophistication, with Bethan Holt, fashion director of The Telegraph, describing the collection as ‘slick, mature and polished’. Reflecting on her journey, Ms Beckham said: “I really love creating what I think women want to wear. I love the fact that I can create what I ultimately desire.”
This latest cash injection isn’t the first time the Beckhams have stepped in to support their businesses. Last year, accountants emphasized the need for continued shareholder support to support the company’s turnaround strategy. With David Beckham’s business ventures flourishing thanks to lucrative deals with Netflix and the Qatar World Cup, it is believed that the Beckhams, alongside Neo, will remain committed to supporting Victoria’s fashion and beauty brands through their financial challenges.
