Beaverbrooks reports fall in sales and profits as rising costs bite

Beaverbrooks, the 106‑year‑old family-owned jeweller, reported a drop in sales and profits for the year ended Feb. 28 as rising costs strained margins.

Revenues slipped 3% to £217.3 million and pre-tax profit fell 20% to £8.6 million, the company said. Beaverbrooks said increases in wages and National Insurance introduced by the Labour government cost the business about £1.7 million in the year.

The retailer, which operates 78 shops across Britain, said it had closed seven stores this year, calling the moves a "last resort" after a challenging period for the sector. Chief executive Anna Blackburn said the business remains focused on personalised customer service rather than automation, a strategy she said increases operating costs but underpins the brand’s offering.

Beaverbrooks invested £5.1 million in refurbishments during the year, updating stores in Glasgow, Bracknell and Peterborough, and opened a new shop in Harrogate. The company said its Clover jewellery collection performed well and that Christmas sales were "strong," even as overall revenues declined.

Blackburn described the past year as "very difficult for the sector" and said the firm has seen reductions in staff numbers across retail and hospitality. She said closing shops was not taken lightly but added she was "cautiously optimistic" about the upcoming "golden quarter," historically a strong trading period for jewellers.

The results underscore broader pressures facing mid-market physical retailers as operating costs rise and consumer spending patterns shift. While the company highlighted targeted investments and product demand at key times, its full-year figures reflect the tension between maintaining service‑led operations and containing labour and overhead expenses.

Beaverbrooks' performance follows a wave of cost-driven adjustments across the retail sector, where companies have balanced refurbishments and new openings with selective closures and cost-control measures. The jeweller's management will monitor trading through the autumn and the holiday season to assess whether recent investments and product momentum translate into recovery in sales and margins.