LONDON – With the challenges of lockdown in the rear view mirror, sales and profits at the Beckham family brands roared ahead in fiscal 2022, with the momentum continuing in the current year.
Victoria’s and David Beckham’s various companies had a prosperous year, according to accounts filed this week on Companies House, the British government’s business register.
As reported earlier this year, Victoria’s fashion and beauty brand turned a modest profit at EBITDA [earnings before interest, taxes, depreciation and amortization] level for the first time. David’s main holding company, David Beckham Ventures Ltd. (DBVL), posted a 30 percent uptick in profit to 25.5 million pounds.
The year was a landmark one for both businesses, which had their share of challenges during the COVID-19 pandemic.
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As reported, during that time Victoria restructured her business, cut costs, and laid off staff, while one of David’s former partners, Global Brands Group, was forced to shut. In early 2022, David inked a new deal with Authentic Brands Group, now known as Authentic, to co-own and manage his global brand.
According to the Companies House filings, Victoria Beckham Holdings Ltd. (VBHL), the fashion and beauty business founded by Victoria Beckham and managed with her business partner, the private equity firm NEO, delivered a second consecutive year of high double-digit growth.
Revenues were up 44 percent to 58.8 million pounds in 2022, and the company achieved positive adjusted EBITDA of 200,000 pounds, compared with a loss of 2 million pounds in 2021.
Operating losses dropped to 900,000 pounds from 3.9 million pounds in 2021, reflecting the company’s turnaround efforts and ambition to become profitable, according to the Companies House filing.
Marie Leblanc, chief executive officer of Victoria Beckham Holdings, described 2022 as a pivotal year that confirmed the healthy growth trajectory of the business, with momentum continuing into 2023.
“The company has shown a highly positive dynamic in 2023 with unprecedented double-digit growth, and a renewed interest in the brand after its third show in Paris,” said Leblanc, adding there has been a “strong evolution” in leather goods and ready-to-wear.
“The business is rebalancing towards its direct-to-consumer channels with a significant acceleration of its digital reach and omnichannel experience,” Leblanc said.
In fiscal 2022, Beckham’s company saw “substantial” growth in sales across the wholesale and online sales channels and at the brand’s flagship in London’s Mayfair.
The bestseller last year was the chain pouch bag, part of a wider, Made in Italy handbag collection that launched for fall 2022. The flat gold chain on the soft clutch style is modeled on a men’s watch strap. The company said the bag continues to be a bestseller.
In the current fiscal year, Victoria Beckham’s company has been notching “positive double-digit growth” across all product categories while the direct-to-consumer channel has been performing well following the designer’s move to Paris Fashion Week.
The beauty category has been experiencing “unprecedented demand,” while the debut fragrance collection, revealed in September 2023, has been performing strongly, the company said.
David Beckham’s various businesses also performed solidly in 2022, with “high double-digit” growth and consolidated brand revenues of 72.6 million pounds.
According to the Companies House filing, DBVL, which comprises the bulk of David Beckham’s brand partnership and licensing deals, saw revenues climb 69 percent to 57.4 million pounds, while net profits were up 30 percent to 25.5 million pounds.
The strong performance was driven by contracts with long-term partners such as Sands, Maserati, Panini and Guild eSports, according to Companies House. DBVL also forged new partnerships, including an ambassador’s role with the 2022 FIFA World Cup.
At Seven Global LLP, which holds the licensing and commercialization rights for the David Beckham brands outside DBVL, revenues were 10.1 million pounds, while profits were 8.6 million pounds.
Partnerships under the Seven Global LLP umbrella are Adidas, Tudor, Coty and Safilo, which produces and distributes DB Eyewear.
Studio 99, the content, creative and production studio cofounded by David Beckham, saw revenues hit 5.1 million pounds in 2022. The company made a small loss due to an increase in headcount as the business scaled.
In 2022, Studio 99 coproduced shows for Disney Plus and BBC Two. It also developed and produced the “Beckham” documentary series and others for Netflix and Amazon Prime Video.
The filing noted that “Beckham,” which was released in September 2023, spent six weeks in Netflix’s global top 10 shows, achieving the number-one spot in 59 countries.
According to Companies House, in 2023 DBVL and Seven Global secured further new contracts with global partners including Nespresso.
The filing said that David Beckham’s investment in Inter Miami FC, the Major League Soccer team he cofounded, has been “particularly successful” following the signing of Lionel Messi in July.
