Victoria Beckham’s fashion business has posted another annual loss as demand for the former Spice Girl’s high end clothes “plateaued”.
Victoria Beckham Limited, which has not made a profit since it launched in 2008, reported a loss of £12.3m for 2018.
Sales slipped 16% to £35m, amid weaker wholesale demand.
Chairman Ralph Toledano said sales of clothing and accessories had levelled off after years of growth.
“The performance was in line with expectations, so we were not surprised. Our goal is to reach profitability as soon as possible,” he told trade journal Business of Fashion.
Mrs Beckham launched her label in 2008 with a collection of luxury dresses, and now sells fashion and accessories in more than 400 stores around the world.
But while she has received critical praise, the label has struggled financially, leading Mrs Beckham to say earlier this year that it was “not a vanity project”.
“If I want this brand to still be here in 10, 20, 30, 40 years’ time, I need to break even, and then I need to be profitable,” she told the Financial Times in March. “We’re on the right track to do that, but it’s not going to happen tomorrow.”The company has been trying to improve its performance, launching its own cosmetics range, striking a partnership with Reebok, and making price cuts.
But it said weaker demand from wholesale customers had hit performance in 2018.
Mr Toledano said: “I firmly believe that our destiny is in our hands. We have a great talent in Victoria and, if you take that asset with a dream team, we can do it.”
Mrs Beckham controls the business with her husband and former Manchester United star David Beckham, via their company Beckham Brands Holdings.
The group, which manages Mr Beckham’s endorsement deals and stake in football club Inter Miami FC, also saw a sharp fall in sales in 2018.
Losses at Mrs Beckham’s label were partly to blame, as well as weaker income from Seven Global, a joint venture that manages some of his corporate partnerships.
It helped push Beckham Brand Holdings to its first ever net loss of £1.6m in 2018, which followed a net profit of £12.3m in the previous year.