Victoria Beckham has announced a first profit for her fashion business. (Photo by Gareth Cattermole/Getty Images)

Gareth Cattermole/Getty Images

Victoria Beckham has generated her first operating profit as her fashion company prepares to open its first permanent U.S. store in New York in September.

Victoria Beckham Holdings reported a $9.9 million gain in 2025 compared with a $2.2 million operating loss a year earlier. Revenue increased 15% to $175.2 million, marking the fifth consecutive year of double-digit growth.

On the face of it, this is the turning point the business has been working toward for years but now the question is whether Victoria Beckham has genuinely built a sustainable luxury business, or simply had a very good year.

"This is a landmark moment for Victoria Beckham and reflects several years of disciplined execution and strategic investment," said Sybille Darricarrère Lunel, CEO of Victoria Beckham, who joined the fashion business in July 2025 after a career at Christian Dior Couture. "Delivering this result against a more challenging luxury market and macro backdrop makes it an even more significant milestone."

It’s been a long journey. Victoria Beckham launched her fashion label in 2008 with a small collection of dresses and a considerable amount of scepticism about whether a former Spice Girl could establish herself as a credible designer. The brand has subsequently expanded into handbags, leather goods, beauty and fragrance, but profitability has proved elusive.

The business accumulated substantial losses over its first decade and beyond, while David Beckham and Victoria Beckham themselves, alongside investment firm NEO Investment Partners, repeatedly provided financial support. NEO invested $40.5 million in 2017 for a significant minority stake. As recently as 2024, the company was still reporting an operating loss, although that had narrowed dramatically from earlier years.

Victoria Beckham Focuses On Core

The fashion business appears to have become considerably more focused as Victoria Beckham has built its proposition around a clear set of hero products, tailoring, dresses, occasion wear and elevated everyday fashion.

Dresses and gowns accounted for 32% of the retail business in 2025, while the company's Iconics collection performed particularly strongly. The Katherine Jacket, Alina Trouser, Isabella Gown and Bela Dress have become the kind of recognisable signatures that luxury brands need if they are to move beyond founder recognition and develop a genuine product identity.

Direct-to-consumer sales also benefited from higher footfall and conversion at the Dover Street flagship in London, as well as growth through the company's website.

But perhaps the biggest structural change has been the emergence of beauty. Victoria Beckham Beauty launched in 2019 and has increasingly become a second growth engine rather than an adjunct to the fashion label.

The latest evidence is The Foundation Drops, which more than doubled the size of the skincare business. It became the company's second best-selling product, sold out shortly after launch and generated a waitlist of more than 25,000 customers before its return in 2026.

"Unless we all can't wait to have what we're working on, it doesn't go onto the development plan," said Lauren Edelman, CEO of Victoria Beckham Beauty.

The company is now expanding its beauty distribution through retailers including Nordstrom, Bloomingdale's, Mecca, Space NK and Harrods. It says it is targeting more than 300 locations across 15 markets. Fragrance is also gaining traction, with Portofino '97 Eau de Parfum among the best-performing products.

"We have big ambitions to expand our global footprint over the next five years," Edelman said, "while remaining highly considered in how we scale and focused on partners that build long-term brand equity and desirability."

Victoria Beckham New York Store

This year, the company opened its first U.S. retail location through a pop-up at Bal Harbour Shops in Miami, Fla., trading through Sept. 30, while a New York store on Mercer Street is due to open at a yet-to-be confirmed date in September. The latter will bring fashion, beauty and fragrance together under one roof.

The U.S. is particularly important as it is already the largest market for Victoria Beckham Beauty and offers a much larger potential customer base for fashion.

The April launch of the Victoria Beckham x Gap collection also demonstrated the scale of consumer interest around the name, with the first 38-piece collection selling strongly while giving Beckham access to an audience far larger than the traditional luxury customer.

The former Spice Girl's biggest achievement may no longer be persuading the fashion industry that she is a designer; instead it may be proving that she can sustain a long-term profitable luxury company.