Her fashion and beauty empire has racked up losses of over £66 million since it launched in 2008.
But Victoria Beckham has turned a profit for the first time in 15 years – with the help of an £890 clutch bag, a £30 eyeliner and a carefully orchestrated social media strategy which sees her post make-up tutorial videos on TikTok which are watched by millions.
The former Spice Girl, 49, is said to be ‘thrilled’ at the turnaround after her latest financial accounts showed it was £200,000 in the black in 2022, as shoppers bought up her accessories after she launched a line of leather goods last year.
The chain pouch clutch bag, which comes in several colours including black, cream and lilac, has become a must-have item. While most of them are priced at £890, more specialised versions cost up to £1,550.
Meanwhile, her beauty arm, which Victoria began in 2019 has also been a huge success – in particular her satin kajal eyeliner, priced at £30.
Victoria Beckham has turned a profit for the first time in 15 years – with the help of a carefully orchestrated social media strategy which sees her post make-up tutorial videos on TikTok which are watched by millions
The former Spice Girl, 49, is said to be ‘thrilled’ at the turnaround after her latest financial accounts showed it was £200,000 in the black in 2022, as shoppers bought up her accessories after she launched a line of leather goods last year
Available in 16 colours, it has sold so quickly that the star’s team has struggled to source them quick enough for their demand.
Sources close to Victoria say their popularity comes from posts on TikTok and Instagram that show potential buyers how to apply them.
Her success has been such that earlier this month she opened her third store in Paris in the department store Galeries Lafayette – something of a dream for the star who shows her collections at the annual Fashion Week in the city, alongside the industry’s most successful designers.
A friend of Victoria’s says that she is ‘so happy’ to have turned around the business, which she launched in 2008 with a small collection of dresses.
She is especially thrilled because she is about to turn 50 in April next year. The friend told the Mail: ‘It feels like two special milestones have come together. Victoria is just so happy.’
Despite its famous founder, the brand has struggled to make any money.
Auditors have warned that it risked going bust without further financial support from shareholders, which include the Beckhams and private equity firm Neo Investment Partners.
The luxury label has borrowed more than £30 million from other parts of the Beckham business empire over the past 15 years.
A friend of Victoria’s says that she is ‘so happy’ to have turned around the business, which she launched in 2008 with a small collection of dresses
However, last year’s results mark ‘a turning point where the group became profitable’.
Revenue surged 44 per cent to £58.8 million in 2022 compared to £40.9 million in the previous year.
The company said sales have continued double-digit growth in 2023 with ‘unprecedented’ demand for beauty products and the new fragrance collection.
In an interview with Vogue France in October, Victoria revealed the brand had turned a profit saying ‘this is just the beginning, I have lots of ambitions and I work hard to achieve my goals.’
She added: ”Now that I have laid down the groundwork for the house, the real work can begin.’
However, another measure of profit showed the company had lost around £3 million during the year, although that was less than the nearly £6 million loss recorded in 2021.
In 2020, it was revealed by The Mail on Sunday that Mrs Beckham was to use the government’s furlough scheme to pay her staff during the pandemic – despite her and husband David’s estimated £360 million fortune.
However, after much criticism, she did a U-turn, meaning UK tax payers were saved from funding her employees’ salaries.
Victoria’s husband David has raked in a huge £72m in a year – after having a huge hit with his Netflix documentary
Meanwhile, Victoria’s husband David has raked in a huge £72m in a year – after having a huge hit with his Netflix documentary.
Company figures released on Friday revealed David Beckham Ventures Limited and Seven Global LLP made a £72.6m profit through sponsorships and his production company.
A source told The Sun: ‘It’s been a golden year for Goldenballs. The Netflix documentary deal was worth over £20 million alone and its huge success has been vindication.
‘David continues to be flooded with commercial and partnership offers and has never been more in demand – despite retiring 10 years ago.
‘The couple are on course to make over £100m next year which is quite astonishing.’
