Mister Spex announces Transformation and Restructuring program “SpexFocus” and updates guidance for 2024

Mister Spex announces Transformation and Restructuring program “SpexFocus” and updates guidance for 2024

The Supervisory Board and Management Board of Mister Spex SE have approved the "SpexFocus" transformation and restructuring programme for the years 2024 and 2025. The aim is to significantly increase profitability and ensure sustainable cash generation for the company in the medium term. SpexFocus is expected to increase EBITDA (incl. rent) by more than € 20 million, predominantly impacting 2025 and 2026. Implementation of the programme will start immediately, with measures being phased in over 2024 and 2025. Based on current planning, the overall cash outflow for the program is expected to total around € 9 million, with majority recognized in H2 2024.

The restructuring program includes extensive measures such as reduction of personnel costs, price adjustments, optimization of operations, and closure of all international stores which includes five stores in Austria, two stores in Sweden and one store in Switzerland. Mister Spex has thoroughly analysed alternative options but sees no path to profitable growth in these markets and at this scale. As the result of this program, Mister Spex expects a recurring uplift of approx. € 2 million in cash flow. Mister Spex will make every effort to assist its employees through the transition in a fair manner and act fully in line with employer practice standards.

The transformation program includes a fundamental repositioning of the brand to enhance the company’s relevance and leadership in the optical industry and that will improve the overall margin profile. The new campaign focuses on optician expertise and positions Mister Spex as a trusted optician for life. It aims to particularly strengthen its positioning with its existing consumers and extend it, reaching the discerning 40- to 60-year-old target group, who place with a high demand for multifocal lenses high value on well-founded optical advice and expertise. Additionally, the effort to reposition the brand aims to reduce the promotional and discount participating activities.

As of 2025, Mister Spex will change its key financial performance indicator from Adjusted EBITDA to EBIT to enhance transparency and provide clearer insight into the financial performance.

Stephan Schulz-Gohritz, Chairman of the Management Board and CFO, said: “We are confident that the strategic realignment will reinforce our leadership position as the omnichannel optician in the market, thereby ensuring our sustainable and profitable growth in the future."

Tobias Krauss, Chairman of Supervisory Board said: “In order to realize the potential of Mister Spex, a clear transformation and restructuring is now necessary. We have great confidence in the expertise and commitment of Mister Spex's management and team to steer the company through this phase and ensure its long-term success."

Preliminary financial results for H1 2024

The preliminary H1 2024 results are below the company’s expectations but remain within the guidance range, albeit at the lower end. This shortfall is primarily due to adverse weather patterns.

Based on preliminary financial results, Mister Spex SE concluded the first six months of 2024 with net revenue of € 119 million, up from € 117 million the previous year (+1%).

The gross margin was 50.1%, down from 50.8% the previous year. The second quarter was affected by mixed weather patterns, which adversely impacted sunglasses sales. Later Easter in 2024 shifted prescription glasses sales from the first quarter to the second quarter, largely compensating for the lower contribution from sunglasses.

Personnel expenses have continued to improve due to the efficiency program Lean4Leverage (L4L), which was launched in 2022, while the number of stores has remained the same. Other operating expenses grew due to the rebranding project as well as costs for transformation and lean management.

This translates to an adjusted EBITDA of € -0.8 million, compared to roughly € 0.7 million last year. For H1 2024, cash and cash equivalents were € 99.6 million, therefore cash outflows for the company in the first half of 2024 was € 11 million and € 6 million in Q2 2024. 

Against this backdrop as well as restructuring and repositioning program impacting second half of the year, the company adjusts its guidance for 2024. Previously, the management expected low-to-medium net revenue growth and an adjusted EBITDA margin in the low single digit percentage range. The company now anticipates net revenue between € 210 and € 230 million (growth from 3% to -6% for the year) and an adjusted EBITDA margin between +1% and -4% for the full year.

The publication of the full half-year report is scheduled for August 29, 2024. This report will provide further background information on the performance in the first half of the year.
 

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
D-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 2021 of Mister Spex, which is available at https://ir.misterspex.com/.