Losses deepen at Victoria Beckham’s fashion business after demand wanes

Victoria Beckham's fashion label has seen losses deepen last year, amid waning demand for the former Spice Girl's high-end clothes.

Victoria Beckham Ltd saw losses grow 20% to £12.3 million for the year to December 2018 as it said demand "plateaued".

The company, which has not made a profit since it was formed in 2008, saw sales dive due to weaker wholesale demand.

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Victoria Beckham at London Fashion Week
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Victoria Beckham at London Fashion Week
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Romeo Beckham, Brooklyn Beckham, Cruz Beckham, Harper Seven Beckham and Anna Wintour attends the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: Dame Helen Mirren and Karen Elson attend the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Romeo Beckham, Brooklyn Beckham, Cruz Beckham, Harper Seven Beckham and Anna Wintour attend the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: Harper Seven Beckham and David Beckham attend the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: Designer Victoria Beckham on runway at the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Romeo Beckham, Brooklyn Beckham, David Beckham (background) Harper Seven Beckham and Anna Wintour attend the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: Anna Wintour attends the Victoria Beckham show during London Fashion Week September 2019 at the Foreign Office on September 15, 2019 in London, England. (Photo by Karwai Tang/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Romeo Beckham, Brooklyn Beckham, Cruz Beckham, Harper Seven Beckham and Anna Wintour attends the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: Designer Victoria Beckham on runway at the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Romeo Beckham, Brooklyn Beckham, Harper Seven Beckham and Anna Wintour attend the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Tim Whitby/BFC/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Emmanuelle Alt, Edward Enninful, Romeo Beckham, Brooklyn Beckham, Cruz Beckham, Harper Beckham, David Beckham and Anna Wintour attend the Victoria Beckham show during London Fashion Week September 2019 at British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Darren Gerrish/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: Maya Jama attends the Victoria Beckham show during London Fashion Week September 2019 at the Foreign Office on September 15, 2019 in London, England. (Photo by Karwai Tang/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: A guest attends the Victoria Beckham show during London Fashion Week September 2019 at the Foreign Office on September 15, 2019 in London, England. (Photo by Karwai Tang/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: Billy Porter attends the Victoria Beckham show during London Fashion Week September 2019 at the Foreign Office on September 15, 2019 in London, England. (Photo by Karwai Tang/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: Helen Mirren and Sinead Burke attend the Victoria Beckham show during London Fashion Week September 2019 at the Foreign Office on September 15, 2019 in London, England. (Photo by Karwai Tang/WireImage)
Models present creations from designer Victoria Beckham during a catwalk show for the Spring/Summer 2020 collection on the third day of London Fashion Week in London on September 15, 2019. (Photo by Niklas HALLE'N / AFP) (Photo credit should read NIKLAS HALLE'N/AFP/Getty Images)
Models present creations from designer Victoria Beckham during a catwalk show for the Spring/Summer 2020 collection on the third day of London Fashion Week in London on September 15, 2019. (Photo by Niklas HALLE'N / AFP) (Photo credit should read NIKLAS HALLE'N/AFP/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Laura Bailey, Aymeline Valade, Billy Porter, Helen Mirren, Karen Elson and Sinead Burke attend the Victoria Beckham show during London Fashion Week September 2019 at British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Darren Gerrish/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: (L-R) Victoria Beckham and Helen Mirren backstage after the Victoria Beckham show during London Fashion Week September 2019 at the British Foreign and Commonwealth Office on September 15, 2019 in London, England. (Photo by Darren Gerrish/WireImage)
LONDON, ENGLAND - SEPTEMBER 15: Guest with colourful clothing arrives at Victoria Beckham show at Foreign and Commonwealth Office during London Fashion Week September 2019 on September 15, 2019 in London, England. (Photo by Neil Mockford/Getty Images)
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Ralph Toledando, chairman of the business, said sales of its clothing and accessories stagnated during 2018 after years of growth.

In an interview with trade title Business of Fashion, he said: "The performance was in line with expectations, so we were not surprised. Our goal is to reach profitability as soon as possible.

"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."

The company is controlled by Mrs Beckham and her former England footballer husband David, through their Beckham Brand Holdings company.

The performance was in line with shareholder expectations after "cutting costs, focusing on its digital channels and refining the product to more closely reflect Victoria Beckham's aesthetics and values", the business said in the newly released Companies House accounts.

It said wholesale revenues grew by double digits in the UK, but "current challenges affecting department store retailers" resulted in a decline in international markets.

Sales have increased in certain segments of the business while losses have "significantly reduced" in 2019, the company said.

It said it expects to become profitable in the fourth quarter of the year and has an increased wholesale order book for 2020.

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