Stella McCartney profits and revenues plummet in FY23
However, despite the decrease of operating expenses in 2023, as a result of the loss of revenues, the company’s current operating loss increased from £8.76m to £22.5m
Stella McCartney has seen a decline in profits and revenues, as its losses widened from £10m to £24.68m in FY23, while revenues fell from £40.06m to £21.9m.
The group stated that in 2023, it faced significant pressure from inflation on materials and salaries, with adverse effects in particular on the cost of goods sold.
The fashion brand’s Royalties also dropped from £10.7m to £9.65m, representing 44% of its revenues.
Additionally, its brick and mortar sales also decreased from £6.37m to £4.92m, comprising 22% of revenues.
While the group’s administrative and back-office costs further decreased in 2023, investments continued to sustain long-term growth. As a result, operating expenses decreased for the second consecutive year from £45.33m to £42.06m in 2023.
However, despite the decrease of operating expenses in 2023, as a result of the loss of revenues, the company’s current operating loss increased from £8.76m to £22.5m.
Stella McCartney stated that to foster transformation and bring the business back to sustainable growth, a turn-around plan led by the newly-appointed CEO, Armandine Ohayon has been put in motion.
The transformation plan aims to bring long-term revenue growth, with focus put on the products and communication pillars to foster brand desirability.
On 24 January 2025, the group completed the acquisition of all outstanding shares in Anin Star Holding Limited, its parent company, making it the sole ultimate shareholder of Stella McCartney Limited.
Stella McCartney said: “In 2024 and beyond, the company will continue to focus its efforts on implementing product and communication strategy in order to nourish the brand’s desirability and visibility, and ultimately develop sales, while right-sizing its operating cost base and optimising gross margin.”
