Fashion label spending hits Beckham profit
DAVID and Victoria Beckham’s joint brand business is due to record a slump in profits for the last financial year after the power couple took a £10m dividend and ploughed investment into the ex-spice Girl’s fashion business.
Beckham Brand Holdings – the firm the couple set up in 2014 as a holding company for Victoria Beckham’s fashion business and the licensing of David Beckham’s name – is expected to post a £20m drop in pre-tax profits to £19.8m for the year to the end of December 2016, from £39.5m a year earlier.
Insiders said the drop in profits reflected a one-off payment to Mr Beckham in 2015 from Seven Global, a joint venture between the former footballer, PR mogul Simon Fuller, and Hong Kong fashion business Global Brands. The venture is focused on developing consumer products around the David Beckham brand. So far, that includes his own fragrance, a clothing collection by Kent & Curwen, and a collaboration with Adidas, H&M and Biotherm.
Sales remained steady at Beckham Brand Holdings at £47.5m, according to accounts that will be filed shortly at Companies House.
Within Mr Beckham’s business, sales rose from £10.2m in 2015 to £11.2m due to further income from partnerships with drinks firm Diageo and insurance group AIA Vitality. Sales at Victoria Beckham Ltd remained stable, while losses doubled from £4.8m in 2015 to £8.5m on the back of increased investment in design, marketing and sales.