Mister Spex SE Reports 2% Growth in Core German Market and Significant Improvement in Gross Margin in Q3 2024 – Guidance for 2024 confirmed

Mister Spex SE Reports 2% Growth in Core German Market and Significant Improvement in Gross Margin in Q3 2024 – Guidance for 2024 confirmed

• Consistent Growth in German Market: Revenue in Germany increased by 2% compared to the prior year with 4% Like-for-Like growth
• Rise in Prescription Glasses Sales: Revenue from prescription glasses grew by 4% year-on-year, with a 5% increase in the German market.
• Gross Margin Improvement: Gross margin increased by 302 basis points to 48.8%, driven by the growing share of high-margin products in the total mix and reduced discounts and promotional activities.

Mister Spex SE (MRX), Europe’s leading omnichannel optician, has achieved revenue of €57.8 million for the third quarter of 2024, marking a 3% decline compared to the same period last year. This decrease is primarily attributed to the closure of international stores in Scandinavia, Austria, and Switzerland as part of the transformation and restructuring program "SpexFocus". However, the core German market demonstrated positive development. Additionally, the company achieved a significant improvement in product-level profitability during the quarter. The implementation of "SpexFocus" is already yielding results, as evidenced by an enhanced gross margin and a successful shift toward high-margin categories. The category of prescription glasses achieved a 4% increase in revenue.

Consistent Growth of 2% in German Market

The core German market demonstrated resilience with a 2% revenue increase, driving from both online- and offline growth. Prescription glasses sales were a significant contributor, with a 5% increase in Germany, which boosted the gross margin. This improvement was partial driven by the launch of "SpexPro", a private label for premium eyewear lenses.

Increasing Profitability and Customer Satisfaction with "SpexPro"

With the launch of the new premium lenses “SpexPro,” the company takes a significant step forward in the ongoing development of its product portfolio, strengthening its premium private label segment. After the initial rollout in Germany, Austria, and Switzerland, "SpexPro" will now be gradually introduced in additional markets. "SpexPro" reports an average order value €30 higher than the "White Label" option for prescription glasses and prescription sunglasses. The product has been well-received by customers, as reflected in an increase in the share of varifocal units sold, rising from 16% to 20%.

“The launch of SpexPro lenses represents a significant advancement that allows us to offer our customers high-quality products, while also enabling us to increase our market share in prescription eyewear lenses, thereby further enhancing our profitability”, says Stephan Schulz-Gohritz, Chairman of the Management Board of Mister Spex SE.

Streamlining International Segment

International revenue declined by 17% in the third quarter year-on-year. This is a result of the strategic closure of international stores announced in August 2024 as part of "SpexFocus”. At the beginning of September 2024, the Swiss store was the first to close. Additionally, exit agreements with all remaining landlords in Austria and Sweden are already in place, with full market exits expected to be completed by year-end. This initiative allows Mister Spex to fully concentrate on the German market, which continues to offer significant growth potential, both in terms of like-for-like sales and through the development of new market segments.

Financial Performance and Outlook

The gross margin improved by 302 basis points year-on-year, reaching 48.8%. This increase is driven by a higher share of margin-accretive prescription glasses sold and a reduction in discounts and promotional activities. These measures also led to a higher average order value, which rose to €99.4, an increase of 3% compared to the same quarter last year. Improvements were seen across the product categories of prescription glasses and sunglasses.

Revenue from sunglasses dropped by 2% compared to last year, partly due to reductions in discounts and promotional activities. Additionally, demand for sunglasses was impacted by adverse weather conditions, especially in September.

Adjusted EBITDA for the third quarter stood at -€1.4 million, compared to €0.2 million in the previous year’s quarter.

“With the focused execution of our transformation and restructuring program, ‘SpexFocus’, we are on a clear path toward sustainable and profitable growth”, said Stephan Schulz-Gohritz. “While we see positive developments in our core German market, our strategic focus remains on delivering enhanced products and services to best meet our customers' needs. By focusing on high-margin products and streamlining our international business, we are convinced that we can drive both customer satisfaction and sustainable growth.”

Mister Spex reiterates its outlook for the fiscal year, anticipating net revenue between €210 and €230 million. Management expects an adjusted EBITDA margin in the range of -4% to +1%.

The quarterly report and additional information for analysts and investors are available on the Mister Spex Investor Relations website. The FY 2024 results are scheduled for release on March 27th, 2025.

Revenue by product category and segment.

¹⁾ Management defines gross profit as revenue less cost of materials and gross profit margin as the ratio of gross profit to revenue.

²⁾  Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortisation, adjusted for share-based payment expenses according to IFRS 2, one-off transformation costs and other one-off effects that are not part of the regular course of business.  

³⁾ Customers who ordered in the last twelve months excluding cancellations.
⁴⁾ Orders after cancellations and after returns.
⁵⁾ Calculated as revenues divided by number of orders after cancellation and after returns, over the last twelve months.

About Mister Spex SE:

Mister Spex is Europe’s leading omnichannel optician, distinguished by its seamless integration of online and offline presence, innovative technologies, a comprehensive product range, and exceptional customer service. Since its founding in 2007, Mister Spex has evolved from a pure online player to a successful omnichannel optician with more than 7.1 million customers and 11 online shops across Europe, as well as brick-and-mortar retail stores. Mister Spex employs over 120 highly qualified opticians who ensure top-notch optical services in their stores. As a digital native, technology and innovation have always been central to the company’s development. Utilizing advanced technologies such as digital 2D-to-3D tools for frame adjustment and intelligent browsing functionalities, Mister Spex sets new standards in the optics industry, offering extraordinary value to its customers. Mister Spex focuses on making the eyewear purchasing experience unique, simple, transparent, and enjoyable, combining a wide and diverse range of high-quality products with extensive optical expertise and advice through customer service, its own stores, and an extensive network of partner opticians. 

Investor Relations:

Irina Zhurba I Head of Investor Relations I irina.zhurba@misterspex.de

Press Contact:
Elina Vorobjeva I Head of Corporate Communication I Elina.Vorobjeva@misterspex.de

Mister Spex SE 

Hermann-Blankenstein-Straße 24  
10249 Berlin
Website: www.misterspex.de  
Corporate Website: https://corporate.misterspex.com

Disclaimer:

This publication contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Mister Spex SE and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied by such statements. Actual results, performance or events may differ materially from those described herein as a result of factors affecting Mister Spex, such as changes in general economic conditions and the competitive environment, capital market risks, foreign exchange rate fluctuations and competition from other companies, as well as changes in international and national laws and regulations, particularly with respect to tax laws and regulations. Mister Spex SE assumes no obligation to update forward-looking statements.

This publication contains supplementary financial measures (not specifically identified in relevant accounting frameworks) that are, or may be, so-called alternative performance measures. For purposes of evaluating the financial condition and results of operations of Mister Spex, these supplemental financial measures should not be considered in isolation or as an alternative to the financial measures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks. Other companies that present or report alternative performance measures with a similar title may calculate them differently. Explanations of financial ratios used can be found in the Annual Report 2023 of Mister Spex, which is available at https://ir.misterspex.com/.