LONDON — Stella McCartney Ltd., the U.K. division of Stella McCartney, saw net profits rise 17.8 percent to 2.1 million pounds, or $3.3 million, in the year to Dec. 31, 2009, from 1.79 million pounds, or $2.8 million, in the previous year.
Frederick Lukoff, president and chief executive officer, attributed the rise in profits to “consistent, strong ready-to-wear collections,” coupled with strong accessory sales, particularly of the label’s Falabella bag.
Turnover at the company rose 8.7 percent during the year, to 14.6 million pounds, or $22.8 million, from 13.5 million pounds, or $21.1 million, in the previous year. Lukoff said the label had performed “very well” at both retail and wholesale, but declined to elaborate on the exact split between the two channels.
All currency figures have been calculated at average exchange rates for the period.
Noting the label’s strong performance in a difficult economic year, Lukoff said he believes McCartney’s “personality,” as reflected in the brand, resonates with consumers. “It’s very grounded, there’s a strong sense of reality in the brand…the style is applicable to the reality of [customers’] lives…and that’s meant that even in a very difficult year for the industry as a whole, we’ve actually had a great year,” said Lukoff. “And 2010 looks even significantly better.”
In terms of the current financial year, the company will launch a new Web site later this month, and will add U.K. e-commerce to the site, with the plan to then add the facility for European countries. In addition, the label’s first children’s collection will launch in November, following McCartney’s collaboration with Gap Kids last year. “The Gap [Kids] collection has been very, very successful for us and showed us that there was a demand for Stella in the kids world,” said Lukoff. “We’re very excited about the [Stella McCartney] kids collection.”
The 2009 fiscal results, which were filed earlier this week at Companies’ House in London, represent only part of the Stella McCartney business. Stella McCartney Ltd. is the U.K. legal entity that registers sales from the designer’s London flagship on Bruton Street and royalties from the designer’s licensing deals.
However, the label’s wholesale sales and sales from its six directly operated retail stores outside the U.K. are incorporated into the full year Gucci Group accounts and are not made public. Stella McCartney is jointly owned by the designer and Gucci Group.
Lukoff also said the label has more retail expansion planned for the coming year — following a store in Milan that opened in February, a store in Las Vegas’ Crystals mall will open in December. After that, Lukoff said the label plans to “accelerate” Stella McCartney’s retail expansion. “I think we can do more in the United States and Europe,” he said.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty