Jeweller Beaverbrooks has recorded a loss in profits due to increased operating costs and levels of long-term investment.

For the financial year ending February 2024, Beaverbrooks has reported a £15.2m drop in operating profits and a £3.6m rise in sales. 

The group’s profits are down from £25.7m in 2023 to £10.5m this year as significant levels of long-term investment takes a toll.

Despite this, the group has recorded a turnover rise up from £225m last year and has attributed this to growing market share in a difficult economic landscape.

Beaverbrooks said it has continued its commitment to prioritising its people, product and infrastructure to ensure business growth while navigating the challenging trading environment and currently remains confident for the future.

The company has increased its investment in its store estate by 5% on the previous year, totalling more than £15.3m.

This includes the refurbishment of seven Beaverbrooks stores, in addition to the opening of a second luxury Loupe boutique in Croydon and five mono-brand boutiques – bringing the total to 88 Beaverbrooks Group stores nationwide.

Beaverbrooks managing director Anna Blackburn said: “Despite a challenging marketplace, we are very proud of what we’ve achieved by maintaining a long-term view on investment that gives us confidence moving forward.

“Central to our success is our hard-working and engaged teams across the country and I am so proud that we have stayed true to our company culture, coming together and working so hard. 

“Staying true to our values by putting people first has always allowed us to emerge from difficult trading times stronger than ever, and we are committed to continuing this into the future.

“We know that 2024 has been a challenging year already, so it is more important than ever that we put profits back into optimising our business and investing in our people, product and infrastructure to ensure growth moving forward.

“We are as focused, optimistic and ambitious as ever and as the industry faces more turbulent times ahead, we have everything we can in place to drive profitability and grow.”