Inspecs Group, a renowned eyewear designer and manufacturer operating globally, has recently announced a decline in its revenues for the nine-month period ending on September 30, 2022. The decrease in revenues can be attributed to unfavorable foreign exchange movements. However, despite this setback, the UK-based company remains optimistic about its future prospects and its ability to overcome the challenges.
One of the main factors affecting Inspecs’ performance was a 13% decrease in orders, which has had consequences such as delaying the company’s expansion plans for its Vietnamese factory and the investment in a new factory in Portugal until at least the third quarter of 2023. Nevertheless, Inspecs experienced sales growth on a constant currency basis across Europe, the UK, and the US, as well as in its manufacturing businesses in Vietnam and China.
The decline in revenues was primarily caused by currency movements, especially the weakening euro against the US dollar. As a result, reported revenues slipped by 3% to $179.4 million. However, the company’s acquisitions in December last year added $10.8 million to the sales figures, resulting in an overall positive growth of 2.8%. On a constant revenue basis, sales increased by 3.7% to $191.8 million, and with the acquisitions factored in, the growth was even higher at 9.8%.
Inspecs specifically highlighted the deteriorating macroeconomic climate and declining consumer confidence in Germany as major factors contributing to the decrease in order intake. The company anticipates that the German and French markets will continue to be weak in the first half of 2023. In contrast, the order book in the US remains stable, and the company’s frame business in the UK has exhibited growth compared to the previous year.
Looking ahead, Inspecs acknowledges that it is not immune to the macroeconomic environment and the decline in consumer confidence, especially in Europe. However, the company firmly believes that it is well-positioned to regain growth once its core markets recover and it continues to capture a larger market share.
Apart from facing financial challenges, Inspecs is also undergoing significant management changes. Lord MacLaurin, the current chairman, is set to retire on December 1, 2022. Following his departure, founder and CEO Robin Totterman will assume the role of executive chairman. Richard Peck, a current non-executive director with extensive experience in the retail industry, will take over as the new CEO. Furthermore, Matthew Loran, who brings valuable experience from working with global finance teams in companies like Capita Group and Imperial Brands, will join Inspecs in November as the new finance manager. The company also has plans to appoint two additional non-executive directors to its board.
Despite the challenges and changes it is currently facing, Inspecs remains positive about its ability to navigate the current market conditions and return to growth in the future. With its strong brand portfolio and continued efforts to expand into new markets, the company is optimistic about its long-term prospects in the global eyewear industry.
Useful links:
1. Inspecs Group Official Website
2. Eyewear Industry in the US – Statistics & Facts
