Beaverbrooks, a renowned jeweller, has recently disclosed its annual accounts for the year ending in February, revealing a mixed performance. Despite a decline in both net profit and gross profit margin, the company is satisfied with its overall progress during this period. The company’s turnover, however, experienced a notable increase of 11.4%, reaching £225 million. The decrease in the gross profit margin can be attributed to Beaverbrooks’ deliberate strategy of expanding its range of watches and jewellery, which involved collaborating with brand partners and developing its own Beaverbrooks and Loupe brands.
This past year has been regarded as an investment year by Beaverbrooks. The company has heavily invested in team development, resulting in an expansion of its central staff to provide better support for store performance. Furthermore, Beaverbrooks has allocated resources towards improving its buildings and infrastructure, with an emphasis on expanding its physical stores and enhancing its website. Examining the financial figures, the operating profit before discretionary payments saw a decline of 25.4% to £26.3 million, while the profit after tax experienced a more significant decrease of 36.5% to £11 million. These profit impacts can be partially attributed to the company’s expansion efforts, which led to a 7.1% increase in store numbers and a 10.2% increase in average employees.
Acknowledging the persistently challenging retail environment, Beaverbrooks remains committed to further growth. The company plans to expand its physical stores and strengthen its partnerships with brand allies. Additionally, Beaverbrooks will soon be launching its second Loupe store and a dedicated Loupe website. These initiatives align with the current buoyancy of the watches and jewellery sector, as consumer interest in premium and luxury timepieces and jewellery continues to thrive, despite the ongoing cost-of-living crisis.
During the Christmas season of 2022, which proved to be particularly challenging, Beaverbrooks witnessed a strong consumer interest in jewellery. Despite the cost-of-living crisis, shoppers were undeterred in their Christmas spending, leading Beaverbrooks to dub this period “The Great Diamond Rush.” The significant consumer demand for jewellery further reinforces Beaverbrooks’ expansion plans and continued investment in the sector.
In conclusion, although Beaverbrooks experienced a decline in profits, the company remains optimistic about its future prospects. Its strategic expansion, investment in team development, and infrastructure enhancements position it well for future growth. With plans to open more stores and strengthen brand partnerships, Beaverbrooks is well-positioned to take advantage of the ongoing demand for premium watches and jewellery.
Useful Links:
1) Beaverbrooks Official Website
2) The Jewellery Editor
