Stella McCartney reports widened loss amid revenue decline in 2024

Stella McCartney Ltd, the luxury fashion brand, reported a significantly increased loss for the year ended December 31, 2024, despite continued strategic efforts focused on sustainability and product innovation. The company's loss for the financial year widened to 33.59 million pounds in 2024, up from a loss of 24.68 million pounds in the prior year, while operating loss increased to 29 million pounds. This was primarily driven by a 27 percent decrease in total revenue, which fell to 16 million pounds, largely attributed to challenging market conditions.

The company said in a filing, royalties from third parties remained the largest revenue stream at 7.45 million pounds representing 46 percent of total revenues. Brick & Mortar sales, or trading activities with third parties, increased slightly to 5.39 million pounds, now comprising 34 percent of revenues. The operating loss increased to 29.29 million pounds.

Despite financial headwinds, the company affirmed its strategic path as a "conscious luxury pioneer," deeply rooted in sustainability and cruelty-free craftsmanship. The brand celebrated the 15th anniversary of its Falabella bag and the 10th anniversary of its Elyse platform trainer. New products included the vegan Ryder bag and the Stella McCartney x adidas Rasant trainer.

The company's Summer 2025 runway collection featured 96 percent conscious materials. Innovations debuted included the Ryder bag crafted in HYDEFY—a mycelium-based alternative to animal leather—and looks featuring Living Ink algae-based black pigment and Kelsun seaweed yarns.

The directors acknowledged the ongoing challenges of the global economic and geopolitical landscape, which continue to impact consumer demand and contributed to a decline in global demand for luxury goods in 2024. For 2025 and beyond, the Company will focus on implementing its product and communication strategy to boost brand desirability and sales, while continuing to right-size its operating cost base.