2024-01-14 07:57:23
Translated by
Anne SCHILLING
Published on
Jan 2, 2024
Stella McCartney Limited has published the results of its last financial year relating to the year 2022. They show that the company was able to bounce back following the pandemic, even if it remains in deficit.
See the fashion showSTELLA MCCARTNEY – Fall-Winter 2022 – 2023 – Women’s Clothing – France – Paris – © ImaxTree
Stella McCartney’s brand, like that of Victoria Beckham, which has also just published its results, remains relatively modest compared to the global luxury giants. However, the profiles of McCartney and Beckham transcend the size of their activities and are in the spotlight much more than companies of similar size.
So how does Stella McCartney’s business fare? We see that its turnover increased by 23% to reach just over 40 million pounds sterling, or 46.2 million euros. The previous year, turnover amounted to 32.5 million pounds (37.5 million euros).
Taking a closer look at the revenues, we see that the profit sharing with Stella McCartney Italia SRL amounted to 22.8 million pounds (26.3 million euros), or 57% of the turnover. ‘business. Royalties reached 10.8 million pounds (12.4 million euros), representing 27% of turnover, and benefited from an additional 3 million pounds (3.4 million euros) from the Stella McCartney Kids license (the brand signed a licensing agreement with Simonetta SpA for its Kids line in 2021). Sales in physical stores increased to reach 6.3 million pounds (7.2 million euros), or 16% of overall turnover.
As mentioned earlier, the company is still not profitable. However, the operating loss improved significantly compared to the previous year, increasing from 30.3 to 8.76 million pounds, or from 35 to 10.1 million euros, which, according to the company, is also a sign that “confirms the trajectory towards the break-even point”. The reduction in operating loss is due to significant improvements in gross margin, “thanks to the adjustment of the entrepreneurial formula and a decrease in operating expenses of 17%, due to the rationalization of the structure and costs”.
Losses before tax and net losses amounted to 10 million pounds (11.5 million euros), compared to 32.7 million pounds (37.8 million euros) the previous year.
Clearly, a significant factor was the fact that consumers’ fashion purchases began to normalize following the shock of the pandemic. But the company’s results were also influenced by the continuation of the strategy started in 2020.
The objective of this strategy is to “nurture the brand’s appeal through the most sought-following products”, specifying that the brand had “remained rooted in its strong values of fashion and sustainable development”. She adds that the ready-to-wear offering continues its “fashion elevation, returning to the brand’s DNA codes while flourishing through artistic collaborations” with Frank Stella and Yoshimoto Nara and the creation of capsules presented during the two fashion shows in March and October 2022 in Paris.
The year 2022 was also marked by the renewal of its historic collaboration with Adidas and by the launch, in August of the same year, of a range of cosmetics, intended “as a responsible alternative to the luxury care market”.
The company did not open any new stores during the year, the total number of establishments managed in its own name being limited to two. It focused on “like-for-like activities and local initiatives… in order to compensate for the low level of international tourism”.
It also implemented some strategic projects such as improving the online customer experience, which continued throughout the year, following its partnership with YNAP ended in 2021.
All rights of reproduction and representation reserved.
© 2024 FashionNetwork.com
1705219250
#Stella #McCartney #posts #increased #turnover
