Losses widened at Stella McCartney’s fashion brand in the year the designer bought out LVMH as its sales fell to their lowest level since 2009, it has been revealed.
New accounts filed with Companies House show that the firm’s pre-tax loss went from £25m in 2023 to £33.5m in 2024.
Stella McCartney last reported a pre-tax profit with the £9m it posted in 2017.
Since then the company’s losses have totalled more than £177m.
The new results have also revealed that Stella McCartney’s sales were cut from £21.9m to £16m in 2024.
The total is the firm’s lowest since the £14.6m turnover it reported for 2009.
The firm’s revenue was hit by a decrease in profit sharing with Stella McCartney’s Italian division which went from £7.3m in 2023 to £3m.
Royalties also fell from £9.6m to £7.4m but sales from its stores edged up from £4.9m to £5.3m.
Operating expenses remained flat at £42m in 2024. They had decreased from £54m in 2021 and £45m in 2022.
Stella McCartney cites ‘challenging market conditions’ for lower sales
In a statement signed off by the board, Stella McCartney’s company said: “As the fashion industry navigates its future, Stella McCartney remains committed to redefining luxury through impactful sustainable fashion and pioneering innovation.”
It added: “Despite the decreasing trend of operating expenses, the current operating loss increased from £23m to £29m in 2024, primarily due to the challenging market conditions and their impact on revenue.”
The results come after Stella McCartney bought back LVMH’s 49 per cent stake in her fashion brand, which the luxury giant had held for five years.
City AM reported in January that McCartney will continue to advise LVMH chief Bernard Arnault and the group’s executive team on sustainability issues as global ambassador on sustainability.
LVMH originally acquired the minority stake in 2019, one year after McCartney purchased Kering’s 50 per cent stake in her brand.
Kering and McCartney, who is the daughter of the Beatles’ Paul McCartney, had worked together for 17 years, with Gucci – now a division of Kering – helping to launch the brand in 2001.
LVMH is the largest luxury conglomerate in the world – it owns a huge variety of brands including Givenchy, Celine, Fendi and Dior, as well as champagne brands Dom Pérignon and Krug.