Victoria (Secret) Beckham’s Brand Revenue Plummet

David and Victoria Beckham’s joint brand business is due to record a drop in their last finance year after the couple took a £10 million divided and ploughed investment into the former Spice Girl’s fashion business.

David Beckham’s brand holdings, the firm the couple set up in 2014 as a holding company for Victoria’s (Secret) Beckham’s fashion business and the licensing of David Beckham’s name – is expected to post a £20 million drop in pre-tax profits to £19.8m for the year to end December 2016 compared to 39.5 million just a year earlier.

Insider said that the drop-in profits is related to a one-off payment to David Beckham in 2015 for Seven Global and joint venture between a celebrity manager Simon Fuller, and Hong Kong fashion business Global brands. The focus was to develop customer products around David Beckham’s brand. With the brand flourishing with David’s own fragrance and clothing collection by Kent & Curwen with the collaboration with Adidas, H&M and Biotherm a cosmetics company.

Sales with Beckham’s Brand current holding sitting at £48m, according to accounts that will be sent out at the Company House

Within Mr Beckham's business, sales rose from £10.2m in 2015 to £11.2m due to further income from partnerships with drinks company Diageo, which makes Haig Club whisky and probably my favorite, and insurance group AIA Vitality.

Meanwhile, sales at Victoria Beckham Ltd remained stable while making double the losses from £4.8m in 2015 to £8.5m on the back of investment in the fashion brand’s design, marketing and sales.

Insiders said that the fashion business had enjoyed double-digit growth during the first half of this year, with sales propelled by collaboration with United States high street chain Target and an Estee Lauder make-up deal.

The former pop star’s fashion business was recently valued at £100m following a major cash injection from the man behind French inspired baker from a chain Paul.

Neo Investment Partners, base in the West End and led by David Belhassen, a former Goldman Sachs banker who ran Paul until 2010, invested £30 Million in Victoria Beckham Ltd in exchange for a minority stake.

The cash will be used to fund an international e-commerce expansion for the fashion label, which makes clothes, shoes, glasses and accessories. It is understood that with the new firepower, Victoria Beckham Ltd is on track to break even by 2020. The couple received a £10.2m divided from their combined brand business in 2016, and an additional £18.7m dividend is understood to have been paid during the course of 2017.