The owner of Ray-Ban has issued a warning over its performance this year after its UK sales and profit fell in 2024.
The UK arm of Luxottica Group said the increase in the cost of goods and services is expected to negatively impact its gross and operating profit this year.
The group added that the increase in employer’s National Insurance contribution to 15 per cent – which Chancellor Rachel Reeves announced in her Autumn Budget – will “further put strain on an already high rate of labour cost inflation”.
The warning on its future performance comes as the owner of Ray-Ban posted a turnover of £165.8m for 2024 in the UK, down from £168.1m in the prior year.
New accounts filed with Companies House also show that the group’s pre-tax profit also dipped from £7.4m to £6.7m in the 12 months.
The wider 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 concerned about inflation
A statement signed off by the board said: “Turnover has decreased… due to a slowdown in foot traffic.
“This was related to a very cool summer, said to have been the coolest summer since 2015.”
The owner of Ray-Ban added: “We continue to experience inflationary pressures on most cost lines, in particular labour costs.
“This cost is increasing at a faster pace than inflation due [to] constraints in the supply of workers (continued increase in long-term sickness in the wake of the pandemic), which has already experienced post-Brexit shortages in some sectors.
“Additionally, the increase in employer contribution of National Insurance to 15 per cent as of 1 April, 2025, will further put strain on an already high rate of labour cost inflation.
“Despite this the company remains profitable in 2024.”
The group also said: “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 increase in costs of goods and services will negatively affect the gross profit and operating profit offset by the company’s strong cost control in place.
“2025 continues with consistent growth on [compared to the] prior year, but for thd coming months there are rising concerns about inflation and performance of international channels being affected by the geo-political situation.”
