Vivienne Westwood sales and profits rise

2022 was a landmark period for Vivienne Westwood Limited with the label’s founder’s sad death late that year. But in filing its accounts for the 12 months to the end of December 2022, the company stressed its growing strength.

It detailed some strong progress at the business, which produces four clothing labels as well as leather goods, jewellery and range of soft accessories and homewares. Turnover rose by 53% year-on-year and gross profit increased by 53% as well. 

Revenue reached £101.3 million while gross profit was £61.9 million. Operating profit and pre-tax profit rose from £19.8 million to £38.4 million. And net profit was up from £15.2 million to £30.89 million.

Cash flow from operations went from £6.9 million in the previous year to £16.9 million this time and physical store sales increased 65% on the year while e-commerce was up 39%. In 2022, the company started the process to take its e-commerce operations in-house and that was completed in September 2023, which it said should further improve its operations. Wholesale also saw a big jump during the year in question with an 80% year on year rise.

While the gross profit margin was steady at 61%, the company said margins remain under pressure due to the nature of wider retail conditions. It has been focusing on alleviating this pressure by reviewing pricing to improve the gross profit margin and this policy will continue on an ongoing basis. 

The company also said the brand continues to be attractive to its wide customer base and its focus continues to be improving existing stores and clarifying the position of the brand by focusing the offer and streamlining its portfolio of different lines.

It still has major ambitions to establish a better presence in relatively new markets for it, such as China and the US, as well as increasing market share in Europe (in particular France, Italy and Germany) and Asia. 

It also said it remains heavily focused on sourcing materials and components that have a lower impact on the environment and over 90% of the non-blended virgin cotton jersey used in the collections is made from certified organic yarns. The company is working to increase his percentage further. 

It’s also part of the Canopy Style initiative and had committed to only use FSC certified viscose from 2022. It didn’t quite get there but it said it was making real progress with over 95% of the non-blended viscose currently used in its collections being FSC certified. Its retail packaging is also now fully plastic-free and the company is working to eliminate all single-use virgin plastic from transit packaging, as well as running a number of other eco-focused initiatives.