Profit at diamond, jewellery and watch retailer Beaverbrooks has been slashed despite it reporting another year of record sales.
The family-owned retailer has posted an operating profit of £10.5m for the year to the end of February 2024, down from the £25.7m it achieved in the prior 12 months.
Beaverbrooks said its profit had reduced because of an increase in operating costs and “significant levels of long-term investment”.
The Lytham St Annes-headquartered company added that its turnover increased from its previous record of £225m to £228.6m.
In a statement, Beaverbrooks said: “Despite the challenging trading environment, the business has continued its commitment to prioritising its people, product and infrastructure to ensure business growth, and remains confident for the future.”
The business was established in 1919 and operates 88 stores across the country, up from 85.
2024 has been a challenging year already – Beaverbrooks boss
Managing director Anna Blackburn said: “Despite a challenging marketplace, we are very proud of what we’ve achieved by maintaining a long-term view on investment that gives us confidence moving forward.
“Central to our success is our hard-working and engaged teams across the country and I am so proud that we have stayed true to our company culture, coming together and working so hard.
“We also greatly appreciate the loyalty of our customers who have continued to shop with us to purchase diamonds, jewellery and luxury and designer watches.
“Staying true to our values by putting people first has always allowed us to emerge from difficult trading times stronger than ever, and we are committed to continuing this into the future.
“We know that 2024 has been a challenging year already, so it is more important than ever that we put profits back into optimising our business and investing in our people, product and infrastructure to ensure growth moving forward.
“We are as focused, optimistic and ambitious as ever and as the industry faces more turbulent times ahead, we have everything we can in place to drive profitability and grow.”
Chairman Mark Adlestone added: “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.
“I am very proud that we have been able to donate over £2.34m of profits to charities during these uncertain times, when they need it most.
“Remaining true to our culture and values, we will continue to invest in the business, our people and the communities we serve to futureproof the Beaverbrooks Group and its ongoing success.”