Beaverbrooks sales rose by 11.4% to £225 million in the year to the end of February 2023 and have continued to grow in the six months since, despite the challenging economic headwinds in the UK.
From March to August, the company says year-on-year sales growth has slowed to 3.1% as pressures on typical household budgets have been squeezed by rising inflation.
That compares favourably with Watches of Switzerland Group, which reported an 8% drop in UK sales over the three months to the end of July.
Accounts have not yet been published at Companies House, but a statement from the company says its gross profit margin was hit last year, dropping from 21.6% to 17.1%, as it continued to invest in its estate, people and charities across the financial year.
“We are delighted to share another year of strong financial results and are so proud of our people who have worked hard to achieve such amazing success,” says Anna Blackburn, who is marking her tenth year as managing director of Beaverbrooks this year.
“Without their commitment to providing exceptional levels of customer service, we would not have been able to make the same level of investment into our people and estate that we did last year.”
Total capital expenditure into its estate reached £14.5 million in FY23, which included refurbishments plus four new monobrand watch boutiques in Cambridge, Norwich, Glasgow and the West Midlands.
This investment has continued since February with the opening of its 84th store — a TAG Heuer boutique in June — and a dedicated Rolex service centre this summer.
Beaverbrooks now has 85 points of sale and has invested over £7 million in new stores and upgrades including watch boutique openings in York, Leeds, Derby and Reading.
The team has grown by 10% to 1,165 employees.
Charity work remains central to the Beaverbrooks mission, and it donated £2.57m in the last financial year.
It also supported 46% of the team who donated through Payroll Giving with 100% match funded donations to support charities.
In addition, Beaverbrooks made over £250,000 available for colleagues to donate a share to make a positive difference to local community causes.
“As a family-owned business, enriching lives and making positive changes to the world is in our DNA, and this is reflected in every decision we make as a company,” says Mark Adlestone OBE DL, chairman of Beaverbrooks.
“By staying true to our values, we have been able to deliver financial success and invest in our people and our infrastructure. We are able to protect jobs during uncertain times and ensure we are paying our people fairly as well as paying bonuses to colleagues who are performing to a high standard,” he adds.
