Newly filed financial accounts reveal that the Stella McCartney fashion house has seen its losses deepen significantly, with sales collapsing to their lowest point in 15 years.
Financial Performance in Sharp Decline
Documents submitted to Companies House show the brand's pre-tax loss expanded from £25 million in 2023 to £33.5 million in 2024. This continues a difficult trend for the label, which last recorded a pre-tax profit back in 2017. Since that time, the company has accumulated total losses exceeding £177 million.
Turnover, or revenue, also fell sharply. It dropped from £21.9 million the previous year to just £16 million in 2024. This figure represents the weakest annual sales performance for Stella McCartney since 2009, when it generated £14.6 million.
Revenue Streams Under Pressure
The decline in overall income was driven by several key factors. Profit sharing from its Italian operations more than halved, falling from £7.3 million to £3 million. Royalty payments also decreased, moving from £9.6 million down to £7.4 million. A small bright spot was a modest increase in retail store sales, which rose from £4.9 million to £5.3 million.
Operating costs remained steady at £42 million for the year, following previous reductions from higher levels in 2021 and 2022. However, the company's operating loss still grew from £23 million to £29 million.
Strategic Shifts and Market Challenges
These financial results come in the same year that designer Stella McCartney completed the acquisition of LVMH's 49% stake in her eponymous label. The French luxury conglomerate had held the minority share for five years, having initially purchased it in 2019.
In a board statement addressing the results, the company said: "As the fashion industry navigates its future, Stella McCartney remains committed to redefining luxury through impactful sustainable fashion and pioneering innovation." It attributed the increased operating loss to challenging market conditions and their impact on revenue.
Despite the buyback, McCartney will continue in an advisory role to LVMH chief Bernard Arnault and his team, acting as a global sustainability ambassador for the group.
