Victoria Beckham's Fashion Brand Finally Turns a Profit After 18 Years Thanks to a £104 Foundation Drop

Victoria Beckham's fashion and beauty label has reported its first profit in 18 years, after the launch of a £104 Foundation Drops product helped lift the business to a £7.3 million operating gain in 2025. The turnaround came after years of cumulative losses that had reached £69 million by 2023.

In 2025, the company recorded a £7.3 million operating profit thanks mainly to a £104 ($110) product that arrived with a 25,000-person waiting list. The Foundation Drops, developed with luxury skincare scientist Augustinus Bader using his proprietary TFC8 technology, doubled the size of Beckham's entire skincare division.

The turnaround came after cumulative losses that reached £69 million by 2023.

Restructure Began With 2017 Stake Sale

The business had already begun a major restructuring when Beckham sold a 30% stake in the company to NEO Investment Partners for £30 million in 2017.

NEO's managing partner, David Belhassen, oversaw a corporate restructure aimed at cutting what had been described as a massive operational cost.

The company had been spending £70,000 ($94,000) a year on decorative office plants and had been flying chairs from one side of the world to another. Seasonal runway shows and operating brick-and-mortar flagship stores in prime luxury shopping districts was another key factor in overhead costs.

Beckham also consolidated her fashion offerings under a single namesake label, reduced average price points and cut stock keeping units by roughly 30 to 35%.

The company also tightened up its finances, bringing in a dedicated team and upgrading its IT and digital planning systems. That gave its creative and product teams a clearer day-to-day view of wholesale and retail sales.

David Beckham Helped Keep Business Afloat

During its years of losses, the company remained heavily reliant on financial support. Sir David Beckham reportedly put millions into the business to cover losses and meet payroll.

Victoria Beckham has said she would not still have a business today without his belief in her and his willingness to provide financial support.

Other shareholders also provided cash and loans. Former Spice Girls manager Simon Fuller and NEO Investment Partners were among those who funded the company.

In one year, shareholders advanced £6.9 million in cash and loans. The following year, they provided another loan of £6.2 million to £6.3 million as the company faced threats to its ability to continue.

The business also relied on millions of pounds in bank debt and extensions on loan repayments while pre-tax losses continued to widen.

Direct-To-Consumer Pivot Lifts Margins

The company also began moving away from its long-standing reliance on wholesale.

Wholesale squeezed margins, while its slow shift into digital retail hurt performance, particularly during the COVID-19 pandemic. Beckham increasingly moved towards direct-to-consumer sales to allow the brand to retain the full retail margin.

In 2019, Victoria Beckham launched her beauty division, more than a decade after starting the namesake fashion label in 2008.

Victoria Beckham Beauty was built primarily as an online, direct-to-consumer business. The division later expanded its e-commerce operation with localised storefronts in markets including Australia and Canada, while a dedicated UK warehouse was established to support online fulfilment.

Beckham also introduced lower-priced products, including a £100 range alongside four-figure luxury fashion. The change helped the brand reach a wider pool of aspirational buyers.

Netflix Series Boosts Sales

'Beckham', a 2023 Netflix documentary series, detailing the couple's lives and Victoria Beckham's struggle to establish her fashion brand provided another boost.

The documentary sparked fresh consumer interest in the brand. Denim and jersey saw particularly strong sales in the fashion division. The beauty business continued to perform as the company recorded its first operating profit in 2025.