Stella McCartney’s luxury fashion brand slumps to an annual loss of £ 32 million, forcing the designer to forego the £ 500,000 dividend she owes
- Loved by some celebrities, the brand has posted nearly £ 32 million in losses
- A drop in money is due to the fact that Stella was still being paid a dividend of £ 531,000
- Last year, the designer put employees on leave when the Covid-19 pandemic was raging
Stella McCartney’s fashion brand posted nearly £ 32 million losses – and the company still hasn’t paid her more than £ half a million owed.
The drop was so great that accounts show a dividend of £ 531,000 from Stella, 49, was not paid two years ago, despite being paid out to £ 2.4m last year.
The numbers in the accounts show that revenue has fallen from £ 42.5m in 2018 to £ 38.2m in 2019.
Rising costs and administrative expenses meant the company posted a loss of £ 32 million compared to a loss of £ 11 million the previous year.
Stella McCartney’s fashion brand posted nearly £ 32m in losses last year
Reese Witherspoon wears Stella McCartney at the 69th Primetime Emmy Awards 2017
The decline in sales came before the global pandemic, and the company said the recovery from the lockdown would be gradual.
The company has a flagship store on Old Bond Street and Fulham Road in London, but also makes money through royalties on designs sold worldwide, as well as links to other brands such as Adidas and Kering Eyewear.
And the company of Stella, the daughter of Beatle Sir Paul McCartney, said in the report that the Covid crisis had hit the company hard.
The account papers state: “Our business has been severely impacted by the Covid 19 outbreak and we anticipate that our sales will gradually recover in the medium term.
McCartney’s Mayfair store, one of 51 stores selling their clothing around the world
Stella’s stores around the world
Stella McCartney operates 51 freestanding stores (with 1,400 employees) in the following locations:
- Manhattan’s Soho
- London’s Mayfair and Brompton Cross
- LA’s West Hollywood
- Parisian Palais Royal
Their collections are distributed in 77 countries through 863 doors, including specialty stores and department stores, and delivered online to 100 countries.
“We made good progress in executing our strategy prior to the Covid 19 outbreak.”
The report added that online sales were good but “failed to fully offset the decline in demand during the period that stores were closed”.
Regarding McCartney’s payment, it said: “Stella McCartney received payments of £ 2,440,555 during the year. The dividend of £ 531,265 declared to Stella McCartney in 2018 remains unpaid. “
Stella’s fashion brand is popular with a number of celebrities, with Hollywood star Reese Witherspoon wearing one of her outfits in recent years.
In April, MailOnline told how the designer had put hundreds of her employees on leave and asked those who were still working to cut their wages during the coronavirus crisis.
As part of Chancellor Rishi Sunak’s bailout, companies can claim up to 80 percent of wages up to a maximum of £ 2,500.
In contrast to Victoria Beckham, who had 30 employees of her fashion company leave after criticism, Stella McCartney did not change her decision.
Ms. Beckham, unlike Ms. McCartney, also planned to add 20 percent to vacation salaries in addition to the 80 percent the government system pays.
At the time, an employee said employees were “extremely injured” by McCartney’s decision.