The Yin and Yang of the Beckham Brands
In fiscal 2018, David Beckham’s company was profitable, while Victoria Beckham’s was not.
LONDON — They complement, and compensate for, each other in many ways, but David and Victoria Beckham’s fruitful union couldn’t stop their holding company from registering a loss of 1.5 million pounds in fiscal 2018. Turnover fell nearly 18 percent to 45.8 million pounds in the year.
According to Companies House, the official register of U.K. businesses, Beckham Brand Holdings Ltd. had posted a profit of 12.3 million pounds in 2017. BBH is a holding company for the David Beckham business and brand and for Victoria Beckham’s eponymous fashion label.
Stripping out non-controlling interests, BBH achieved a profit of 2.1 million pounds in 2018, compared with 11.8 million pounds in 2017. The company paid out a dividend of 11.1 million pounds in 2018, compared with 18.8 million pounds in the previous year.
Last year was one of reorganization and rationalization at BBH: In the 12 months to Dec. 31, 2018, David Beckham established an independent entity to oversee business and brand management operations after splitting with long-term partner Simon Fuller and XIX Entertainment.
In addition, the former soccer star’s company secured investment partners for the Major League Soccer team, Inter Miami CF, which will play its first game in February.
In 2018, the David Beckham brand alone saw its profits shrink to 11.5 million pounds from 23.2 million pounds in the previous period.
The company said the reduction was expected and was primarily the result of a “tapering off” of annual earn-out amounts following the 2015 sale of 51 percent of Seven Global LLP, to Global Brands Group.
Seven Global is a venture between Beckham and Global Brands Group. As reported earlier this year, Seven Global has moved its headquarters to London and hired the former Nike Inc. executive David Heath as managing director.
The David Beckham portfolio is a broad one: In addition to Inter Miami CF, Beckham has partnerships with brands including Adidas, Sands, AIA, Haig, House 99 and Tudor. His charity-focused activity includes Beckham’s work for UNICEF through the Seven Fund, campaigns for Malaria No More and his role as ambassadorial president of The British Fashion Council.
Looking ahead, BBH said it plans to “further expand the commercial and marketing opportunities of the David Beckham brand, new partnerships across a number of categories and new media and entertainment propositions.”
According to a separate filing at Companies House, Victoria Beckham’s brand saw revenues in fiscal 2018 drop to 35 million pounds from 41.7 million pounds, primarily because wholesale sales were down internationally. Losses widened to 12.3 million pounds from 10.3 million pounds in the previous year.
As reported, the couple’s net worth, according to the 2019 Sunday Times of London Rich List, is 355 million pounds, up 15 million pounds compared with 2018.