Stella McCartney Gets a Pay Raise While Fashion Company Takes Cash Vacation | Stella mccartney
Stella McCartney received a salary of almost £ 2.7million from her fashion business last year, up more than £ 220,000 from the previous year, while the company claimed nearly £ 850,000 under the government leave program.
The creator’s salary rose despite a 26% drop in sales to £ 28.4million in the year through December 31, 2020, with UK sales more than halving, while the company recorded a pre-tax loss of £ 31.4million, according to the accounts. for Stella McCartney Limited filed at Companies House. The group recorded a pre-tax loss of £ 33.4 million the previous year.
The accounts show that McCartney’s label, in which she sold a minority stake to French luxury goods conglomerate LVMH in 2019, said it was dependent on additional funds provided by its new shareholder in order to stay in business.
LVMH, which owns a series of high-end brands including Louis Vuitton, Christian Dior and Givenchy, had already granted additional loans of £ 26.3million last year, bringing its total loans to the group to just over £ 66million.
Stella McCartney Limited said the directors of Anin Star Holding, LVMH’s investment vehicle, had “indicated their intention to continue to make such funds available to the company”, but there was no certainty that support would continue.
The London-based fashion company, which prides itself on its environmental and ethical credentials, said its target for 2021 was to increase sales by 4% and “significantly reduce” losses. However, the business is likely to have continued to be affected by further street closures and limits on socialization imposed during the Covid-19 pandemic.
LVMH bought the label from McCartney in 2019, just over a year after ending its 17-year business partnership with rival conglomerate Kering, and bought back its 50% stake in its brand.
McCartney, the daughter of former Beatle Sir Paul and late photographer and animal rights activist Linda, designed her first jacket as a teenager. After professional experience at Christian Lacroix, she became Creative Director of the Parisian fashion house Chloé, before creating her own brand in a joint venture with Kering, owner of Gucci, in 2001.
A spokesperson for Stella McCartney Limited said: “During the lockdown, senior management, including Stella, suffered a pay cut. The 2020 accounts relate to a year of transition and the effects of the pandemic on the distribution sector, but given these challenges, brand sales have remained strong.
“Like all companies in our sector, we are currently going through one of the most difficult periods in a generation and are thinking about how to adapt our activity to the economic evolution of our industry.
“Our mission to end cruelty to animals and help embed sustainability into the fundamentals of business conduct has made real progress. We believe we can come out stronger and better equipped to continue the vital work towards a more sustainable future for all. “