PARIS — Her new fragrance may come in a purple bottle, but red also has been a principal color at Stella McCartney in the first year of her partnership with Gucci Group NV.
McCartney’s design arm, Stella McCartney Ltd., posted a loss of $4.4 million, or 2.8 million British pounds, last year, according to a filing with Companies House in London.
The filing also reveals that Gucci Group, which entered into a 50/50 joint venture with the designer two years ago, injected some $6 million in the period ended Jan. 31, 2002. The company was incorporated Feb. 28, 2001, and its principal activity is described as design services.
The losses give an incomplete picture of the fashion house’s financial situation. Sales of McCartney’s ready-to-wear and accessories, and income from her boutiques in London and New York — which opened within the last year — are not reflected in the filing, as those revenues are believed to be reflected in Gucci Group’s accounting. It notes: “During the next financial year the company will begin receiving royalty income on wholesale business.”
Gucci’s stable of “other” brands, which include Bottega Veneta, Sergio Rossi, Alexander McQueen and McCartney, collectively posted revenues last year of $100.4 million, as reported. The loss before goodwill and trademark amortization of those brands widened to $35 million. At the time, Gucci Group chairman and chief executive Domenico De Sole said the wider losses were derived from investments in new stores and other infrastructure for those labels.
In the Companies House filing, signed by Gucci Group’s James McArthur, executive vice president, director of strategy and acquisitions and also president of its emerging brands, he suggests McCartney’s business is on track.
“Both the level of business and the period-end financial position were in line with management’s expectations based on an agreed business plan and budget,” he wrote. “Since the end of the year, Gucci Group [has] contributed further funding as part of [its] commitment to provide working capital callable in accordance with an agreed business plan and budget. This funding is necessary to enable the company to pay its liabilities as they fall due.”The filing, audited by PriceWaterhouseCoopers LLP, also reveals that Gucci Group is the “immediate parent and ultimate and controlling party” of the firm.
Stella McCartney and Gucci officials could not be reached for comment.
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