Beaverbrooks recorded broadly flat sales of £217 million and a 9% decline in underlying operating profit to £7.8 million during its latest financial year, according to figures reported by the Guardian.
The results suggest that consumer demand for jewellery and watches remained comparatively resilient, with group sales slipping by just 0.1%. Profitability nevertheless came under further pressure as the cost of operating a substantial store network increased.
Managing director Anna Blackburn attributed the decline partly to higher employer National Insurance contributions and increases to the statutory minimum wage. She called on the government to “give business a bit of a break” by not adding further costs for businesses as retailers prepare for the crucial Christmas trading season.
The retailer operates 56 Beaverbrooks stores, four luxury watch and fine jewellery boutiques under its Loupe fascia, and 22 mono-brand stores for watchmakers including Omega, Breitling, Tudor and TAG Heuer.
The group is continuing to invest despite the difficult cost environment. It recently opened its fourth Loupe boutique in Sheffield and plans to refurbish stores at Manchester’s Trafford Centre and Lakeside in Essex. It has also been investing in its online operations, product development and workforce.
The performance illustrates the widening distinction between sales resilience and profitability in UK jewellery retail. Consumers may still be spending, but rising labour and operating costs mean that stable revenue does not necessarily translate into stable earnings.
In its previous financial year, Beaverbrooks reported turnover of £217.3 million and operating profit of £8.6 million, with pre-tax profits of £340,000. The full-year results teased by the Guardian are yet to be filed.
The new figures come as Beaverbrooks reshapes and expands its senior leadership team ahead of brand director Roger Fairhurst’s retirement.
