Victoria Beckham’s Fashion Line is Bleeding Cash, and has yet to make a Profit.

The company that operates David and Victoria Beckham’s “fashion empire” Beckham Brand Holdings paid out  dividends of, 30 million pounds, which is 35 million euros or $38 million to the famous business couple after the clothing line had never made a profit. Victoria Beckham Ltd lost between 8.5 million pounds to a staggering 10.03 million loss in 2017, which was only achieved by a 7 million pounds in debts owed to the parent company and David Beckham’s company.

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For a 28% stake VBL was able to raise 30 million pounds from NEO Investment Partners.

“I’m not sure that the company has ever consistently made a profit and it has lost money for several years running, so the latest trading deficit is really the norm rather than an exception,” Russ Mould from stock brokers AJ Bell told DW.

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“There are lots of luxury fashion brands which continue to make very high profit margins — just look at Burberry or the Kering-owned Gucci — so you would have to say that the latest loss suggests the Victoria Beckham brand may simply not resonate with enough luxury goods buyers for it to be a consistently profitable enterprise,” Mould said.


VBL’s money problems continue despite cutting cuts and laying off staff (20 people) which only saved the company about 3 million pounds. Victoria’s Fashion Brand only started with three staff members and a collection of only a few dresses, which were based on certain clothing pieces that Victoria loved to wear. VBL evolved into a more upscale and pricey line. Victoria Beckham Ltd is a small fashion label, which employs about 150 people after the most recent layoffs. Since it’s debut, VBL has never made a profit.

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