Victoria Beckham’s eponymous beauty brand has reported its third consecutive year of double-digit growth, bucking the trend of much of the luxury market.
Its positive results came after it clambered out of the red in 2022 for the first time since its inception in 2008, despite a tough industry.
Total revenue rose by 52 per cent to £89.1m in 2023, from £58.8m in 2022, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) reached £0.8m, up 800 per cent from £0.2m in 2022.
Gross margin grew by over three basis points to 71.6 per cent, from 68.5 per cent, while operating loss continued to decline to -£0.2m in 2023, from -£0.9m in 2022, ” reflecting the company’s turnaround as it delivers on its plan for profitability”, it said.
Victoria Beckham operates two channels: Beauty and Fashion. Its beauty segment, which it has been particularly focused on in the last few years, “saw further success in 2023, continuing to grow revenue”, the company said.
Last September, Victoria Beckham Beauty launched its first eponymous fragrance collection, after eight years in development.
The brand aims to position itself as a “global luxury house”, Marie Leblanc, chief executive of Victoria Beckham, said.
“Having successfully repositioned the business, 2023 was another very strong year of progress for the company and we continue to see a healthy growth trajectory,” Leblanc said.
“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,” she added.
Beckham’s brand has historically benefited from stand-out products: its wrap-waist dress – which retails at £850 – accounts for one in every ten sales and its leather clutch bag dominated fashion pages when it came out.
The growth is particularly impressive given the current state of the luxury market, in which high-end – but not impossibly so – brands have struggled to keep their footing as they compete over customer’s squeezed wallets.
David Belhassen, founder of NEO Investment Partners, commented: ‘’In the context of a difficult environment, the Victoria Beckham group has sustained its very high growth with an over 50 per cent year on year revenue increase in 2023, with improving EBITDA profitability.
The priority remains the development of products with the highest standards to offer our community total satisfaction.’’