Mister Spex announces Transformation and Restructuring program “SpexFocus” and updates guidance for 2024
- 15. Aug. 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.
| €k or % | H1 2024 | H1 2023 | Q2 2024 | Q2 2023 |
| Net Revenue | 118,714 | 117,159 | 67,599 | 67,059 |
| Growth (YoY) | 1% | 8% | 1% | 10% |
| Gross Margin | 50.1% | 50.8% | 48.7% | 48.7% |
| Personnel expenses | -31,439 | -31,807 | -16,200 | -16,537 |
| Other operating expenses | -34,181 | -32,904 | -18,948 | -17,396 |
| EBITDA | -3,311 | -1,425 | -659 | 532 |
| Adjustments | 2,507 | 2,089 | 1,495 | 1,768 |
| Adjusted EBITDA | -803 | 664 | 836 | 2,300 |
| Cash and Cash equivalents | 99,602 | 124,322 | 99,602 | 124,322 |
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.
Contact details for journalists:
Mister Spex Corporate Communication
press@misterspex.de
About Mister Spex:
Founded in 2007, Mister Spex SE (together with its subsidiaries, “Mister Spex”) is a multi-award-winning company that has become the leading digitally native omnichannel optician in Europe. Mister Spex has been at the forefront of the industry’s transformational shift, growing from a pure online player into a successful omnichannel optician with more than 7.1 million customers, 10 online shops across Europe and physical retail stores. A digital native, technology and innovation have always been an integral part of the company’s evolution, from 2D to 3D digital frame fitting tools to intelligent browsing functionalities. The focus of Mister Spex is to make eyewear purchase for customers an easy, transparent and fun shopping experience by combining a comprehensive and varied range of high-quality products with optician expertise and services through its customer service, own stores and an extensive network of partner opticians.
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