Former Spice Girl’s fashion brand turned over £34 million last year compared to David Beckham’s marketing and sponsorship deals which pulled in £17m
Victoria Beckham has followed her husband David’s lead by building a second career even more lucrative than her first, new figures show.
Accounts submitted to Companies House show that Victoria Beckham Ltd increased its turnover by £9m on the £25m revenue of the previous year, while the companies that handle David’s marketing and sponsorship deals pulled in £17m.
The couple are still very much reliant on David for their personal income, however, as Victoria’s company made a net loss while David’s companies, which have few overheads as they mainly deal with selling his image rights, made £12.7m profit.
The success of Victoria’s fashion house means it is expected to go into profit in the medium term, meaning she could one day be the main breadwinner in the family.
Accounts also show that the couple restructured their businesses, pooling their resources into one umbrella company which paid each of them a £3m dividend. A similar amount was paid to their long-term manager Simon Fuller, who is the third shareholder in the parent company, Beckham Brand Holdings.
Having paid themselves £3m each last year, they have already paid themselves £7m each this year, a figure which is likely to rise still further before the year’s end.
Victoria Beckham’s unqualified success has silenced the critics who dismissed her eponymous fashion label as a vanity project.
Since founding her company in 2008 she has grown it into a business employing 100 people, with a store in London, an online business and proposed new stores in Hong Kong, the Middle East and the US.
As well as her ready to wear Victoria Beckham collection and handbags, which cost up to £18,000 each, it sells denim, eye makeup and the Victoria, Victoria Beckham brand, which is slightly less formal than her mainline label. Sales have grown by 2,900 per cent over the past five years.
As well as being named designer brand of the year of the British Fashion Awards in 2011, Mrs Beckham was named Entrepreneur of the Year 2014 by Management Today magazine for creating “a company that is both real and wildly successful”.
The magazine, which estimated her wealth at £210m, said she was “an adept exploiter of her own celebrity value”.
David Beckham retired from football in 2013, becoming so wealthy by the end of his career that he donated his entire £3.4m salary from his final year as a player at Paris Saint-Germain to two children’s charities.
David Beckham’s wife is pulling her weight in the earnings stakesHe is now the highest-paid ex-sportsman in the world, through marketing and advertising deals with companies including Adidas, Diageo, H&M, Breitling, Jaguar and China Auto Rental and Sky Sports.
He also earns millions more from other business ventures, which are understood to have taken his total earnings to £50.8m last year, according to Forbes magazine.
As part of the restructuring of their companies, David resigned from Victoria Beckham Ltd at the end of last year, having set up his own new company, David Beckham Ventures, in August 2014, of which Victoria is not a director.
A source said the move was “to allow both businesses to grow in their own different ways”. Victoria’s company has high overheads and seasonal fluctuations, meaning it needs to borrow money to maintain a steady cashflow, while David’s companies have a steady income and few costs.
The couple have an equal say in each other’s companies as they attend quarterly board meetings as directors of the parent company.
Source: Daily Telegraph
Pictures by Getty Images