Falling sales at Stella McCartney fuel fears over fashion label’s future
Directors blame ‘challenging market conditions’ as losses widen from £25m in 2024 to £33m
TL;DR
- Sales at Stella McCartney's fashion label decreased by 27% to £16m in 2024.
- Pre-tax losses widened to £33.6m in 2024, up from £25m the previous year.
- The brand has warned of potential cash depletion by 2028.
- The company has not recorded a pre-tax profit since 2017.
- Directors are exploring alternative funding sources for long-term viability.
- Sales growth in the UK and owned stores was offset by reduced royalty and wholesale income.
- Challenging market conditions and reduced consumer spending were cited as reasons for the sales decline.
- McCartney bought back a 49% stake from LVMH in January 2024.
- The brand previously ended a partnership with Kering and bought back its 50% stake.