Vivienne Westwood sales and profits rise strongly in latest year

Turnover and profits increased strongly in the latest year at Vivienne Westwood Limited with the company, which produces the various Westwood labels, leather goods, jewellery and soft accessories/homewares, reporting a 31.5% turnover leap in 2023.

That’s according to accounts newly filed at Companies House for the financial year. Revenue from continuing operations jumped from £101.34 million in 2022 to £133.22 million this time. 

It also said that gross profit rose by 25.8%, reaching £77.85 million. Meanwhile cash flow from operating activities went from £16.9 million in 2022 to £33.2 million in the latest financial year. 

The company’s retail store sales increased by 28.2% year on year, although e-commerce sales were down 30%. But wholesale increased by 48.4%. 

A negative point was that the cost of sales increased by over 40%, which meant a decrease in the gross profit margin to 58.4% from 61.2% in the previous year.

Overall operating profit was up from £38.4 million to just under £44.2 million and net profit for the year increased from just under £30.9 million to just over £33.6 million.

The company’s margins are still under pressure due to the nature of wider retail conditions and external factors, although it has been focusing on reducing the pressure by reviewing pricing to improve its gross profit margins. It also launched a new website near the end of the financial year having been working on a project to internalise its e-commerce business and this should further improve its margins. 

Vivienne Westwood said it continues to invest in its website and despite the overall fall in e-commerce sales said that its webstore is its fastest-growing channel.

Following its founder’s death just over two years ago, the company has continued to focus on its international expansion plan and has continued to make headlines. But those headlines haven’t always been positive ones. The ousting of Jeff Banks from the board, allegations by Westwood’s granddaughter Cora Corré that the late designer was unhappy with CEO Carlo D’Amario and wanted him removed, and disputes over the firm’s right to use archive designs all focused the wrong kind of attention on the business.