Sales at Stella McCartney’s fashion label took a sharp hit last year, deepening the brand’s financial troubles and raising fresh questions about how long it can keep going without new funding.





According to filings submitted to Companies House, the British designer label saw its revenue drop by 27 percent in 2024, falling to £16 million. At the same time, losses grew significantly. Pre-tax losses widened to £33.6 million, up from £25 million the previous year. The brand has not reported a pre-tax profit since 2017, and its financial position has been under strain for several years now, as shared by Daily Mail.






The latest figures come against the backdrop of earlier warnings from the company’s directors that the business could run out of cash by 2028. This would remain a risk even if its parent company, Anin Star Holding, which is controlled by Stella McCartney herself, chooses not to demand repayment of existing loans. While the company has said it has identified contingency plans to stretch its cash reserves, directors admitted they may need to look at other funding options to ensure the brand’s long-term survival.





Known globally for its strong ethical stance, the Stella McCartney label does not use leather, fur, or other animal products. Its vegan handbags, which can cost close to £1,000, have become a signature of the brand. While sales reportedly improved in the UK market and within the brand’s own stores last year, those gains were offset by weaker royalty and wholesale income, dragging overall revenue down.





The company pointed to tough market conditions as a key reason behind the sales slump. Luxury fashion faced a difficult year, with even high-spending customers cutting back amid rising living costs. Chinese consumer demand, a major driver for luxury brands in recent years, also softened. In the UK, brands such as Burberry have previously blamed slower sales on the government’s decision to scrap tax-free shopping for international tourists, a move that affected spending by overseas visitors.





The financial pressure comes at a time of major structural change for the brand. In January this year, Stella McCartney bought back a 49 percent stake in her label from luxury giant LVMH. At the time, both parties said the move reflected her wish to take the brand forward independently. Before that, the label had only recently become fully independent after McCartney ended a 17-year partnership with Kering, the owner of Gucci, and bought back its 50 percent share in the business.





Stella McCartney launched her namesake brand in 2001 in partnership with Kering, after building her reputation as creative director at Chloé in Paris. The daughter of Sir Paul McCartney and late photographer and animal rights activist Linda McCartney, she has long blended high fashion with sustainability and ethical values, a philosophy that has defined her label from the start.





Whether that vision can be sustained without fresh financial backing remains an open question, as the brand navigates a challenging luxury market and its most testing period yet.