Beckham Brands Post Robust Gains in Fiscal 2023
David and Victoria Beckham‘s various companies continued to log robust performances for the year ending Dec. 31, 2023, according to the most recent accounts filed this week on Companies House, the British government’s business register.
The Beckham family brands, which include David Beckham Ventures Ltd., Studio 99 and Seven Global LLP, saw their profitability considerably improve in fiscal 2023. Consolidated net profit more than doubled to $36.2 million in the period, up from $16.2 million in fiscal 2022.
Consolidated revenue increased 2 percent to $91.2 million year-over-year, a 2 percent rise from $89.7 million in fiscal 2022.
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The group said it benefited from the strategic partnership with Authentic Brands Group formed in 2022, bringing continued growth and development of the David Beckham brand through new strategic endorsements, digital partnerships, content creation and new consumer products with the likes of Stella Artois, Boss, Shark Ninja and Paramount.
Profits at David Beckham Ventures Ltd., which comprises the majority of David Beckham’s brand partnership and licensing revenues, saw double-digit percent gains for the period, up 17.9 percent to $37.5 million, from $31.8 million a year ago.
Seven Global LLP, which makes up the licensing and commercialization of the David Beckham brands that fall outside DB Ventures Ltd., including partnerships with Adidas, Tudor, Safilo Eyewear and Coty, reported profits of $10.9 million in fiscal 2023 on revenues of $14.1 million.
At Studio 99 Group, which includes a creative and production studio, revenue grew to $15 million as the company increased production, including of a documentary series for Netflix and also scaled up production of marketing campaigns for David Beckham’s brand partners.
As reported earlier this year, Victoria’s fashion and beauty brand saw revenue and profits climb in fiscal 2023, with the company reporting “substantial” growth in wholesale, online and in the Mayfair flagship.
The brand’s total revenue in the period jumped 52 percent to 89.1 million pounds year-over-year.
In 2023, adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, reached 1.8 million pounds, compared with 200,000 pounds in fiscal 2022.
Operating losses fell to 200,000 pounds from 900,000 pounds as the company continued to focus on streamlining the business, driving efficiencies and becoming profitable.
Bestsellers in 2023 included a gathered waist midi dress, which accounted for one in every 10 online sales. The company said the dress, which costs around 850 pounds and comes in a variety of colors, continues to sell out.
The leather goods collection, which launched in 2022, has continued to perform well, with belts becoming the fastest-growing category. The brand said demand was up thirteenfold year-on-year in 2023.
The brand said growth continued into 2024, with the direct-to-consumer channels flourishing, and the leather goods line now accounting for more than 20 percent of online sales, two years after the launch.
In October, the brand merged the best of artificial intelligence and real-life photography in the label’s latest handbag campaign to promote Dorian, a square-shaped bag with a B buckle. The style was inspired by a vintage briefcase that David Beckham gave his wife.
So far this year the company has also struck deals with Mango for a limited-edition capsule, a range of jointly branded watches with Breitling and a collection exclusive to Mytheresa.
Victoria Beckham Beauty continued to grow in 2023, too. It launched a trio of fragrances; expanded the makeup range with new shades of its top-selling Satin Kajal Liner, and broke into the brow category and the highly competitive contour market.
David Belhassen, founder of NEO Investment Partners, which holds a significant minority stake in the business, said that “in the context of a difficult environment, the brand has sustained very high growth.”
“The team is working hard to continue building the House of VB on ever stronger foundations. The priority remains the development of products with the highest standards to offer our community total satisfaction,” Belhassen added.
NEO purchased its stake in Beckham’s business for about 30 million pounds in 2017.
