Stella McCartney cuts losses, revenues up 23 percent

For the year to December 31, 2022, Stella McCartney reported 23 percent increase in revenues to 40 million pounds.

While the company continued to remain loss making, operating loss significantly narrowed to 8.8 million pounds. The company attributed the narrowing of losses to improved gross margin driven by a decrease in operating expenses of 17 percent. The pre-tax and net losses dropped to 10 million pounds compared to 32.7 million pounds in the prior year.

The company added that profit sharing with Stella McCartney Italia SRL amounted to 22.8 million pounds, which comprised 57 percent of revenue. Royalties reached 10.8 million pounds, accounting for 27 percent of revenue, benefitting from 3 million pounds additional cash from the Stella McCartney Kids licence.

Stella McCartney’s physical store sales increased to 6.3 million pounds, which comprised 16 percent of the total revenue.

In 2022, the company renewed its long-standing collaboration with Adidas and launched the skincare category in August. The company operated two physical stores at the end of the year under review.