Mister Spex reports increased losses in 2024, implements restructuring program

Berlin-based eyewear retailer Mister Spex SE reported expected sales declines and increased losses for the 2024 fiscal year, according to the company's annual report released on Thursday. Management is now hoping for positive effects from the comprehensive restructuring program "SpexFocus," launched last August.

Stable sales in Germany

Revenue for the past fiscal year totaled 216.8 million euros (180.72 million pounds), a three percent decrease compared to 2023, but within the projected range of 210 euros to 230 euros million.

In the core German market, which is the focus of the company's strategy, revenue increased by 0.3 percent to 169.0 million euros. Sales in German stores grew by two percent on a like-for-like basis.

The impact of recent changes was felt in the international business, where revenue shrank by 13 percent to 47.7 euros million. The significant decline was attributed to "the strategic realignment within the framework of 'SpexFocus' and the closure of all stores in Austria, Sweden, and Switzerland," the company explained. The eyewear retailer is now "focusing exclusively on online business outside its home market."

Net Loss Increases by 77 Percent

Despite reduced promotional activity and cost-cutting measures implemented as part of the savings program launched in late summer, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to -5.8 million euros, compared to a positive 0.9 million euros in the previous year.

The bottom line showed a net loss of nearly 84.9 million euros, largely due to significant one-time transformation-related expenses. This represents a 77 percent increase compared to the previous year's loss of 47.9 million euros.

CFO Stephan Schulz-Gohritz, who led the company as interim CEO in recent months, summarized the latest developments. "In fiscal year 2024, we initiated the transformation of the company. The goal of this transformation is to position the company as a profitable optician in the market," he explained in a statement. "To this end, we will systematically improve our profitability, streamline processes, and sharpen our focus on high-margin products."

Management expects a five to ten percent decline in sales for 2025

The company anticipates a "continued challenging retail environment" for the current year. Furthermore, the "price repositioning and reduction of discounts" are expected to negatively impact sales development. Specifically, management forecasts a five to ten percent decline in revenue for 2025 compared to the previous year.

The company also announced that, starting with the new fiscal year, earnings before interest and taxes (EBIT) will be used as the "key performance indicator" to "present operating performance more clearly, create transparency about sustainable profitability, and lay the foundation for long-term value creation." For 2025, the board currently expects an EBIT margin in the range of -5 to -15 percent.

Reforms to pave the way for "sustainable and dynamic growth"

Schulz-Gohritz, who will hand over the CEO position to Tobias Krauss at the beginning of April, is banking on the medium-term effects of the ongoing restructuring program. "Despite a challenging market environment, we are successfully developing our business model," he explained. "Our offline business in Germany has proven to be an important growth driver. This shows that our omnichannel approach is effective and that we are on the right track with our strategy to achieve sustainable, profitable growth."

The company currently expects that the measures initiated will "pave the way for sustainable and dynamic growth from 2026 onwards."