Investment and higher costs dent Specsavers profits

UK eyewear giant Specavers has filed its accounts for the year to the end of February and reported that turnover rose 1.1% to £3.42 billion. The company said this came despite a challenging macro economic landscape.

However, operating profit plummeted as much as 39% to £326 million. The operating margin was only 9.5% this time compared to 13.4% in the previous year, something that was driven by a number of key decisions. 

It said it had taken the decision to absorb inflationary price increases and not pass them on to its customers, while also making a “significant upfront investment” in marketing spend to support the launch and growth of its business in Canada. And it spent more on technology to enhance its online and in-store experience. 

As well as the UK, Ireland and Canada, the company also operates in Norway, Sweden, Denmark, Finland, Spain, Australia and New Zealand. 

It sells eyewear brands including Marc Jacobs, Liberty London, Kylie Minogue, Viktor&Rolf, Vivienne Westwood, DKNY, Hugo, Converse and many more.

The investments it made meant that profit before tax fell to £327.7 million from £449.5 million a year earlier and net profit was down to £246.3 million from £352.8 million.

The company paid an interim dividend of £15 million to its parent company Specsavers Optical Group Limited. 

The business is controlled by Mary and Doug Perkins who set it up in Guernsey in 1984. They’re billionaires and regular names on the Sunday Times Rich List.