Stella McCartney’s fashion house has sounded the alarm over its finances after a slump in sales.
The label, run by the daughter of Beatles legend Paul McCartney, said it would need further cash in 2028 amid a drastic global slowdown in demand for luxury fashion.
Losses ballooned from £10m to £25m in 2023, the most recent year there is public data for, according to accounts published on Companies House yesterday.
Sales fell from £40m to £21.9m in 2023 as the group blamed ‘significant pressure from inflation on materials and salaries’.
It said it would need further financing in 2028 even if it does not have to pay back loans to parent company Anin Star Holding Limited.
And it said it may be forced to consider alternative sources of funding in the long-term future
Directors said there could be ‘significant doubt on the group’s ability to continue as a going concern in the long-term.’
But they confirmed that they were ‘confident’ it would have ‘sufficient funds’ for at least the next year.
Launched in 2001, the brand has attracted many high-profile fans such as Beyoncé, Amal Clooney and Taylor Swift.
It sells products such as vegan leather shoulder bags for £925 and a leopard print trench coat for £1,790.
McCartney has also designed Team GB’s kit for the Olympic Games since 2012.
But her company has not reaped a profit since it made £9m in 2017.
A slowdown in China – the world’s second largest economy and a crucial market for luxury goods – has hit demand for expensive handbags and clothes.
The latest accounts may spark speculation that the label may put itself up for sale over the next few years.
The update came just months after McCartney, 53, bought back the 49 per cent stake luxury giant LVMH held in her fashion label.
The move ‘reflects her desire to write a new page in her story independently’ after five years of investment, a joint statement from LVMH and McCartney said in January.
The French group, whose brands include Givenchy, Celine and Louis Vuitton, had held the stake since 2019.