LONDON — Business is vigorous at Stella McCartney, and the company confirmed it’s on target to turn a profit by 2007.
The firm said losses in the fiscal year running from Feb. 1, 2005, to Dec. 31 declined 70 percent to 948,899 pounds, or $1.7 million, from 3.2 million pounds, or $5.9 million. Revenues nearly doubled to 7.3 million pounds, or $13.2 million, from 3.7 million pounds, or $6.8 million, the company said in a statement Tuesday.
The period reported on Tuesday is for only 11 months so McCartney can bring itself in line with Gucci Group parent PPR’s fiscal year, which is a calendar one. All figures have been converted from the pound at average exchange rates for the respective period.
As reported, Gucci Group has given its smaller brands until 2007 to turn a profit. Marco Bizzarri, chief executive officer of Stella McCartney, said the shrinking losses are due to a rise in revenue and a more efficient way of running the business.
The revenue figure includes U.K. sales and all royalties from the company’s eyewear and fragrance licenses. However, it does not include wholesale revenue from the designer’s business outside the U.K. or retail sales from the Stella McCartney stores in New York and Los Angeles. The U.S. is currently the company’s largest market.
The global Stella McCartney revenue figure is consolidated into Gucci Group’s accounts, along with that of other Gucci subsidiaries including Alexander McQueen, Boucheron and Bedat & Co. Gucci, which owns 50 percent of Stella McCartney, does not break out global figures for its separate companies.
However, Tuesday’s statement said that, if all of Stella McCartney’s sales were measured at retail prices, they would be in the region of 120 million euros, or $144 million.
“Business is very, very positive and there’s a great energy in the company. This is still a new brand. It was only set up in 2001 and sold its first collection in 2002,” said Bizzarri, adding the future would be about consolidation.
“The goal is to build on all the groundwork we’ve laid,” he added, referring to the designer’s projects with Adidas, the launch earlier this year of an accessories collection and the continuing fragrance and eyewear businesses, with YSL Beauté and Safilo, respectively.
Related Articles
You May Also Like
The statement also said McCartney’s husband, Alisdhair Willis, has become a company director. He replaces James Seuss, who left his post as ceo in 2004 to join Harry Winston.
Meanwhile, in other McCartney news, the brand last week opened a new showroom and press office at 210 11th Avenue in West Chelsea in New York. The brand is taking its public relations in-house, and Arabella Rufino will become director of the U.S. operation. The new venue will open officially on April 1.
A spokesman for McCartney said the brand would continue to work with Bismark Phillips, its former public relations firm, on special projects.