Stella McCartney Faces Financial Hurdles as Split with LVMH Approaches

Stella McCartney has recorded a drop in revenues of up to 27% and posted a loss of more than 36% at the end of 2024, according to the latest results filed with Companies House, the UK equivalent of Companies House. These results correspond to the year prior to its breakup with LVMH: in January, the French group and the designer’s firm announced the exit of the former’s capital.

The group, which has been down for two years, closed 2024 with a negative operating result of 29.3 million pounds ($39.2 million), an increase of 30% compared to 2023, when it posted an operating loss of 22.5 million pounds ($30.1 million).

According to the company, this decrease “was mainly due to difficult market conditions and their impact on revenues.“ The net loss for the year also widened from 24.68 million pounds ($33 million) to 33.59 million pounds ($45 million).

Stella McCartney will carry out the company’s expansion in India after adding Tom Mendellhall as group chief executive officer

Royalty revenue fell 22.8% in the face of LVMH’s exit from the company’s capital, falling from 9.65 million pounds ($12.9 million) in 2023 to 7.45 million pounds ($9.98 million) in 2024. This category accounted for 46% of Stella McCartney’s total revenue.

Sales booked through physical outlets increased by 9.3% to 5.39 million pounds ($7.22 million), having recorded 4.93 million pounds ($6.6 million) in 2023. This figure represented 34% of the company’s total revenues in 2024, up from 22% the previous year.

Despite the lower revenues and profits, Stella McCartney remained optimistic about the projects undertaken and the company’s forecasts for 2026, which include a new strategic distribution agreement in India with the company’s Indian subsidiary Stella McCartney.The company’s new strategic distribution agreement in India with local operator Reliance Brands, the restructuring of the top management with the arrival of Tom Mendellhall as CEO, and the new partnership with H&M, twenty years after the first one.