Ray-Ban owner blames wet British summer for slower sales

“One of the wettest summers in recent history” dimmed the rise in sales at the owner of Ray-Ban in 2023, it has been revealed.

The UK arm of Luxottica Group said that while its optical division had seen “continued good performance” in the year, its sunglasses business was impacted by the British weather.

Newly-filed accounts with Companies House show that the company’s turnover increased from £165m to £168.1m in the 12 months while its pre-tax profits fell from £9.8m to £7.4m over the same period.

Luxottica Group is headquartered in Italy and is listed on the New York Stock Exchange.

It was founded by Leonardo Del Vecchio in 1961 while it also owns the likes of Sunglasses Hut and brands such as Persol, Oliver Peoples, and Oakley. 

Ray-Ban owner keeping an eye on rising costs

A statement signed off by the board said savings made in years past were beginning to unwind.

“Government Covid and energy support measures continue to unwind and causing further pressures on expenses.

“Staff costs were higher in 2023 due to a focus on recruiting and retaining talent.

“Inflationary pressures in the market also [contributed] to an increase [in] rate per hour being paid versus 2022.

“The directors consider that in the coming year the business will continue to see a positive improvement in performance attributed to some key investments.

The firm warned that profit would be affected by the higher cost base.

“2024 continues with consistent growth on prior year, but for the coming months there are rising concerns about inflation and performance of international channels being affected by the geo-political situation.”

During the year the average number of people employed by the company increased from 1,054 to 1,126.

On its outlook, the business added: “Despite a challenging macroeconomic environment, the company managed to swiftly recover from the Covid-19 pandemic with a strong sales performance driven by the company’s brands and product offering.

“The directors consider that the coming year will provide opportunities to increase sales and profitability based on planned investments that will enhance the customer experience both in store and online.”.