The former Spice Girls' brand posted a £12.3m loss last year.
Victoria Beckham Limited's exclusive fashion apparel was launched in 2008 and is now sold in 400 brand stores worldwide. But, although the brand itself became quite popular, since then the company has not shown any significant financial achievements - it has never managed to reach the level of profitability. The company posted a loss of £10m last year and posted a loss of £8.2m in 2016.
Financial results published by the company show that not all buyers are willing to pay several thousand pounds for a dress or shoes, even if they have a celebrity's name on them. Brand sales in 2018 fell by 16% to £35m. One of the reasons is the decrease in bulk purchases.
However, representatives of the brand express satisfaction with the results. According to company chairman Ralph Toledano, apparel and accessories sales have flattened out and reached a plateau after years of growth. He argues that the brand's goal is to achieve profitability in the near term and the financial results are not a surprise.
The company is making every effort to improve the financial situation. This includes the development of its own line of Victoria Beckham Beauty cosmetics, the creation of the Reebok x Victoria Beckham collection, and the brand is also reviewing its pricing policy, reducing prices for its range.