Is Victoria Beckham’s rebrand finally starting to take shape? A more affordable price point, her line of knitted basics, and her high-margin Beauty unit will help Beckham and her team usher in what they hope will be a new chapter for the company.
Fifteen years after the brand was founded, profitability is still elusive, but sales have grown by double digits over the past seven seasons, said CEO Marie Leblanc. I’m here.
2021 revenue rose 13% year-on-year to £40.8m ($49.6m), 7% above pre-pandemic levels, company documents released Tuesday showed. Growth will accelerate to his high double digits in 2022, according to the company, aided by the launch of new leather goods and the VB Body knitwear line, as well as a runway show at Paris Fashion Week.
The 2021 loss narrowed to £5.9m ($7.2m) compared to £8.6m ($10.5m) in 2020. [to profitability] Of course, that’s the focus,” LeBlanc said, refusing to commit to a timeline pointing to the uncertain economic climate.
Still, the label’s newfound momentum aroused great ambitions. The brand now hopes to triple its revenue to over £120m in three years, LeBlanc told the BoF. she said.
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When Beckham launched her eponymous luxury label in 2008, her sophisticated, sexy, figure-hugging dresses quickly became popular among celebrities such as Eva Longoria, Blake Lively and Heidi Klum. Got attention. Her ex-Spice Her Girl transformed the glamorous pop image with a sophisticated, pared-back collection.
Despite Beckham’s celebrity profile and a warm reception from industry insiders, the brand is still not profitable, after receiving a £30m cash injection from private equity firm Neo Investment Partners in return. It has reported bumpy top lines in recent years, though, and acquired a private stake in the company in 2017.
Since LeBlanc, a former printemps buyer, took over as CEO in 2019, the brand has revamped its product mix to reduce its exposure to ultra-high-end ready-to-wear. The same goes for bustling start-ups. For 2021, the brand has combined its main collection with the ‘Victoria, Victoria Beckham’ diffusion line, reducing the average price of dresses on the combined label by approximately 40%. The company has also developed a profitable beauty line that has seen “tremendous growth” since its launch in 2019, according to Leblanc.
“The potential and brand equity were there, but we had to rethink the efficiency of our business model and brand positioning,” says Leblanc. On the back end, she said, the company is optimizing its supply chain and streamlining operating costs to boost gross margins. It is
Indeed, even if the revised pricing (which includes a £350 shirt and an £800 dress) makes it more comfortable in an accessible luxury space, Beckham is still in line with its cohort of up-and-coming contemporary womenswear brands. You have to try hard to compete. Others like Nanushka and Frankie Shop offer similar styles at more competitive prices.
Leblanc believes that recent category expansions will help drive future growth. In the brand’s VB Body line, form-fitting knits cost £90 for his bandeau top and £690 for a midi dress. Last year, the brand also launched its debut collection of bags. This is a highly competitive but lucrative category for high-end brands.
The company plans to focus on increasing brand awareness this year, including continuing to participate in the Paris Fashion Week schedule and expanding into new markets such as the Middle East and Asia.
“Geographical expansion gives us confidence that we can truly make our business successful. [a] more likely,” said Leblanc.
