However, the company also noted a decrease in both net profit and gross profit margin. Turnover increased by an impressive 11.4%, reaching £225 million, but the gross profit margin dipped from 21.6% to 17.1%. This decline in profitability can be attributed to significant investments made during the year, including team development, expanded central staff numbers, infrastructure improvements, store expansion, and website development.
Operating profit before discretionary payments saw a 25.4% decrease to £26.3 million, and profit after tax declined by 36.5% to £11 million. These investments were made as part of the company’s growth strategy, with a focus on strengthening its position in the market and expanding its physical store presence. Beaverbrooks also plans to launch a second Loupe store and a dedicated Loupe website. Despite the challenging retail environment, the company remains committed to further growth, capitalizing on the continued consumer interest in premium and luxury watches and jewelry, even amidst economic challenges.
In summary, Beaverbrooks’ annual performance reflects its strategic investments in expansion and development, aligning with the thriving watches and jewelry sector, where consumer demand remains robust.