Victoria Beckham may not have been in a position to make a profit but she is beginning to shrink her losses. Her eponymous label has seen a decrease in turnover and reduced her losses for fiscal 2020.
Companies House, the UK’s official business registry, reported that turnover decreased 6 percent to 36.1million pounds during the twelve months ended December 31, 2020. From 16.6 million pounds, losses after taxes fell to 8.6 millions pounds.
Victoria Beckham Beauty helped improve the bottom line of the company. They also have strong online sales. Although the company suffered losses, this was a better picture than the one that was created when their business was still affected the Covid-19 pandemic as well as global lockdowns.
Victoria Beckham Beauty’s first full year of trading saw a total of 7.3 million pounds, an increase from the 1.9 million pounds in 2019.
From 58 percent, gross margins rose to 61%. 2020 saw no dividends. Although the company was on track to profitability before the Covid-19 pandemic, they did manage to restructure their business to reduce losses. This included tightening their supply chains, consolidating Victoria Beckham lines under one brand, and increasing e-commerce.