British luxury label Vivienne Westwood has reported a profit of 2.7 million pounds for 2019, compared to a loss of 2.5 million pounds the year before.
Turnover at the fashion house increased by 19 percent to 46 million pounds for the year ended 31 December 2019, while retail sales and wholesale sales were up 10 percent and 59 percent, respectively.
The company said 2019 still proved challenging, with cash flow diving partly due to marketing contribution to related parties. It also said that margins are “sill under pressure due to the nature of wider retail conditions”. It said that it was looking at alleviating this by reviewing pricing to improve gross profit margins.
While these figures pre-dated the pandemic, the label did comment on its effect. “The company experienced the profound impact of the Covid-19 pandemic,” it said in its filing to Companies House. “The full effect on the business is still unknown but the company believes its cash reserves and careful cash flow management will mitigate any major repercussions.”
The company is also said it is “undergoing a strategic review to create a new operating structure” that will allow it “to optimise processes and the overall efficiency of the business”.
Photo: Vivienne Westwood Selfridges pop-up, courtesy of Selfridges
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