Fashion brand Stella McCartney narrowed its losses in the 2022 financial year, according to figures released last month. For the financial year, Stella McCartney reported a 23 percent increase in sales to 40 million British pounds. That’s the equivalent of 46 million euros.
Although the company continued to make losses, the operating loss decreased significantly and amounted to 8.8 million British pounds (10.2 million euros). The company attributed the decline in losses to improved gross margin thanks to a 17 percent reduction in operating expenses. Loss before tax and net loss fell to 10 million British pounds (11.5 million euros), compared to 32.7 million British pounds (37.8 million euros) in the previous year.
The company added that its profit share with Stella McCartney Italia SRL was 22.8 million British pounds (26.3 million euros), representing 57 percent of sales. The license fees amounted to 10.8 million British pounds (12.5 million euros), which corresponds to a share of 27 percent of sales. Stella McCartney’s revenue from physical retail sales increased to 6.3 million British pounds (7.3 million euros), accounting for 16 percent of total sales.
In 2022, the company expanded its long-term partnership with Adidas and launched the skincare category in August. At the end of the fiscal year, the Company operated two physical stores.
This article was previously published on FashionUnited.uk.