Victoria Beckham Revenue Climbs in 2023, With Dresses, Leather Goods Among Bestsellers
Sales at Victoria Beckham's fashion and beauty brand rose 52 percent in fiscal 2023, while adjusted EBITDA shot up to 1.8 million pounds.
By
Samantha Conti
LONDON – Victoria Beckham Ltd. saw revenue and profits rocket in 2023, with the company reporting “substantial” growth in wholesale, online, and in the Mayfair flagship store.
The privately-owned company issued a results update four months earlier than usual, reporting a 52 percent uptick in total revenue to 89.1 million pounds compared with the previous year.
Last year was the third consecutive period of high double-digit growth, and the brand added that sales momentum has continued into 2024, across all product categories and despite lackluster demand in the luxury market.
In 2023, adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, reached 1.8 million pounds, compared with 0.2 million pounds in 2022.
Operating losses fell to 0.2 million pounds from 0.9 million pounds as the company continues to focus on streamlining the business, driving efficiencies, and becoming profitable.
David Belhassen, founder of NEO Investment Partners, which holds a significant minority stake in the business, said that “in the context of a difficult environment, the brand has sustained very high growth” and has seen improving EBITDA.
“The team is working hard to continue building the House of VB on ever stronger foundations. The priority remains the development of products with the highest standards to offer our community total satisfaction,” Belhassen added.
Earlier this year Belhassen had hinted at the increase in EBITDA and in an interview said: “The house of VB is now fully live, and a reality. It was a dream for Victoria and I when we partnered, and it is happening. We are now embarking on a new phase with only the sky as the limit.”
NEO purchased its stake in Beckham’s business for about 30 million pounds in 2017.
Marie Leblanc, chief executive officer of Victoria Beckham Ltd., said that following a repositioning in 2021, 2023 was “a very strong year of progress for the company. We continue to build a loyal consumer following on the back of successful Paris Fashion Week shows and new partnerships, with performance across direct-to-consumer channels and leather goods being particularly positive.”
The company said that last year it saw “substantial growth” in fashion and accessories sales across all three of its channels: wholesale, online, and the flagship store at 36 Dover Street in London’s Mayfair.
Bestsellers in 2023 included a gathered waist midi dress, which accounted for one in every ten online sales. The company said the dress, which costs around 850 pounds and comes in a variety of colors, continues to sell out.
The leather goods collection, which launched in 2022, has continued to perform well, with belts becoming the fastest growing category. The brand said demand was up thirteenfold year-on-year in 2023.
Growth has continued into 2024, with the direct-to-consumer channels flourishing, and the leather goods range now accounting for more than 20 percent of online sales, two years after the launch.
So far this year the company has also struck deals with Mango for a limited-edition capsule and a range of jointly branded watches with Breitling.
Victoria Beckham Beauty, which marks its five-year anniversary next month, continued to grow in 2023. It launched a trio of fragrances; expanded the makeup range with new shades of its top-selling Satin Kajal Liner, and broke into the brow category and the highly competitive contour market.
Katia Beauchamp, CEO of of Victoria Beckham Beauty, described 2023 as a “significant year of growth” for the beauty business, driven by product development, and the brand’s growing repeat purchase rate.
“In 2023, the vast majority of our business has been direct, which has allowed us to deepen our focus on high quality customers who continue to engage with us,” she said.
The beauty division has expanded further in all categories including skin care, where it has a longstanding partnership with Augustinus Bader. The latest launch with Bader is in the complexion category, with the Concealer Pen set to debut in September.
