Inspecs Group, a renowned global eyewear designer and manufacturer, has maintained a positive outlook despite encountering obstacles such as decreasing orders in Europe and shifts in top management. Unfavorable foreign exchange rates have contributed to a decline in reported revenues for the nine-month period ending on September 30. Additionally, the company has witnessed a 13% drop in orders, leading to the postponement of expansion plans for its Vietnamese factory and the development of a new factory in Portugal.

Despite these challenges, Inspecs experienced some positive developments during this period. Sales demonstrated growth in Europe, the UK, and the US, as well as in the company’s manufacturing operations in Vietnam and China when assessed on a constant currency basis. Although currency fluctuations impacted reported revenues, resulting in a 3% decrease to $179.4 million, the inclusion of acquisitions made in December contributed to an overall positive growth rate of 2.8%. On a constant revenue basis, sales increased by 3.7% to $191.8 million, and with the acquisitions factored in, the growth rate reached 9.8%.

Inspecs specifically highlighted challenges in the European market, particularly in Germany, where the macro-economic climate and consumer confidence have significantly deteriorated since September. German consumer confidence currently stands at a 25-year low, leading to a substantial decline in order intake compared to the previous year. The company foresees continued weakness in the German and French markets during the first half of 2023. In contrast, the US order book has remained at a similar level to the previous year, while the UK frame business has shown growth.

Looking ahead, Inspecs acknowledges that it is not immune to macroeconomic conditions or the decline in consumer confidence, particularly in Europe. The company expects these factors to impact its performance for the rest of this year and the first half of 2023. However, Inspecs remains optimistic about its capacity to increase market share and recover growth once its core markets rebound.

Additionally, Inspecs has announced significant changes in its top management. Lord MacLaurin, the current chairman, will retire on December 1, and founder and CEO Robin Totterman will assume the position of executive chairman. Richard Peck, a current non-executive director with extensive experience in the eyewear industry, will step into the role of chief executive. The company will also welcome Matthew Loran as its new finance manager, leveraging his expertise gained from his time at Capita Group and Imperial Brands. Furthermore, Inspecs is in the process of appointing two more non-executive directors to the board.

Despite the setbacks faced in the European market and the impending leadership changes, Inspecs remains determined to overcome challenges and seize opportunities to position itself for future growth.

Useful links:
1. Inspecs Group Official Website
2. Importance of Macroeconomic Influences for Businesses