Specsavers FY2024-25 growth largely driven by the UK as most other markets stagnate

Specsavers consolidated its position as the second largest eyewear group globally in fiscal 2024-25 (ended Feb. 28) as its annual revenue increased by 4.3 percent year on year to £4.18 billion (€4.90 bn). Total sales at constant exchange rates were up 7.5 percent, according to the group’s annual review, slowing down from the previous year’s double-digit growth pace.

As shown in the table below, the sales increase in the past fiscal year was almost entirely due to the group’s strong performance in its core UK market. With sales up 6.9 percent to £2.32 billion (€2.72 bn), the country accounted for close to 90 percent of the group’s additional revenue last year.

Solid performances in Ireland and Canada, the group’s fastest growing market, also helped to more than offset flattish or slightly declining trends in all other countries. The group’s business in Australia, its second market, declined slightly in fiscal 2024-25, slowing down sharply from the 17.7 percent sales growth in the previous year.

New Zealand, the Netherlands, Denmark, Norway and Finland all reported a sales growth deceleration of about ten percentage points from fiscal 2023-24. However, this was partly linked to currency headwinds for the group has the British pound appreciated by between about 4 percent and 6 percent in 2024-25 against the Australian dollar, all Nordic countries’ currencies and the euro. The appreciation against New Zealand’s dollar was even higher (8.4 percent).

In terms of retail footprint, Specsavers continues to focus on Canada, which accounted for approximately 80 percent of new stores last year (see table). Since fiscal 2022-23, the group has approximately tripled its brick-and-mortar presence in the country to 155 locations. The UK, Ireland and Australia contributed most of the remaining additional stores last year. The group did not report any store in Spain this year, seemingly indicating its total retreat from the country.

The company explained that it invested £150 million (€175 m) in “store enhancement activity” last year, up from £60 million (€70 m) in the previous year. It said that it has completed “a record-breaking 600+ optical projects and 40 audiology growth initiatives across the UK alone” and 130 across Northern Europe. The count includes new store openings, relocations and enhancements as well as smaller-scale projects aimed at improving customer experience and store efficiency.

In other key figures disclosed in the annual report, Specsavers said that it shipped 55 million lenses from its manufacturing and distribution center in fiscal 2023-24, up 5.8 percent from the figure communicated last year. The group sold 24.8 million frames in the last fiscal year, representing a 2.1 percent year-on-year increase. The contact lenses and hearing aid product categories also reported volume increases (see table).

On the lens side, Specsavers strengthened its collaboration with HOYA in two product categories last year. Sales of the Japanese-based lens maker’s MiYOSMART jumped by 64 percent, partly thanks to the introduction of photochromic and polarizing versions of the myopia management lens. The retail group also launched HOYA’s daily silicone hydrogel contact lenses in its European stores, as well as its Easyvision elisiion multifocal range.

Still in the contact lens category, Specsavers stressed that it has equipped over 10,000 children in the UK with CooperVision’s MiSight myopia management contact lenses.

In the frames sector, the group stressed the successful global launch of Barbour, which it said attracted a 31 percent new customer mix in the UK alone in 2024. Other highlights included the expansion of its Viviane Westwood’s brand into a global men’s collection, the launch of an optical range under the florence by mills brand, which was said to be “a huge hit” with the 25–34-year-old group, and its recently launched Elton John Eyewear collection. The company also develops regional collections in some markets like Canada, Northern Europe and Australia/New Zealand.

Regarding its supply chain, Specsavers stressed that its largest site (Szatmar Optika in Hungary) produces around 300,000 glazed orders per month with 650 workers. The company said it had successfully tested MEI’s block less machines to produce semi-finished lenses, which will bring reductions in labor, energy, consumables and waste.

Other supply chain investments last year included the establishment of a lens mass manufacturing plant in the Philippines to produce high-index finished and semi-finished lenses, capacity expansion at its Kidderminster facility in the UK and the relocation of Canada Glazing Services to its British Columbia distribution center, the company wrote.

On the sustainability front, Specsavers maintained its mid-term carbon neutrality targets: a 50 percent reduction in Scope 1 and 2 emissions and a 25 reduction in Scope 3 emissions by 2030. For the latter, the group said that it is working with its top 100 suppliers on a new global carbon reporting platform to collect more data on their level of emissions and their decarbonization plans.

Regarding its main sustainability achievements last year, the group said that 30 percent of its frame collections now include “more sustainable materials”, up from 16 percent in the previous year. On the packaging side, 76 tons of plastic were eliminated in the UK alone, mostly through the conversion of its frames’ polybags to low-density polyethylene.

Specsavers also stressed that it has conducted life cycle assessments (LCA) on its frames, ophthalmic lenses and contact lenses. Finally, the share of renewable electricity in the group’s mix rose by 55 percent to 66 percent, and its water usage was reduced by 11 percent.