Mister Spex Navigates Restructuring with Narrowed Loss in Q1 2025

Mister Spex, Germany’s online-to-offline eyewear pioneer, reported its first quarter 2025 results, revealing a strategic pivot toward profitability under its SpexFocus transformation program. While total revenue fell 13% year-on-year to €44.7 million, the company narrowed its loss per share to €0.21 from €0.29 in Q1 2024, driven by cost discipline and a shift toward premium products.

Revenue Decline Reflects Strategic Trade-Offs

The drop in revenue was intentional, as Mister Spex scaled back non-core markets and promotional activity. International revenue collapsed 38% after closing stores in Scandinavia, Austria, and Switzerland, while Germany’s domestic sales fell 5% despite a 13% rise in like-for-like store sales. The company’s focus on higher-margin products bore fruit: prescription glasses revenue grew in Germany, with average order values (AOV) surging 26% to over €200 due to sales of its premium SpexPro lenses.

However, sunglasses and contact lenses suffered. Sunglasses revenue plummeted 37%, as Mister Spex reduced discounts and marketing spend, while contact lenses declined 9% as the firm exited low-margin categories. The trade-off was clear: fewer orders (down 25% to 392,000) but higher AOV (€103.90 vs. €96.80) and a 16% drop in active customers—likely signaling a shift away from price-sensitive shoppers.

Profitability Improves as Costs Decline

The real story lies in Mister Spex’s bottom line. Gross margin expanded 441 basis points to 56.4%, fueled by premium product sales and reduced discounting. EBIT improved by €3 million to €-6.3 million, while operating cash flow turned positive at €2.3 million—its first quarterly positive cash flow in years.

Cost-cutting was aggressive:
- Marketing spend dropped 30% year-on-year.
- Personnel expenses fell 3%, excluding €1.37 million in restructuring charges.
- Depreciation shrank 20% as Mister Spex paused store openings and tech investments.

Strategic Momentum and Challenges Ahead

Mister Spex’s SpexFocus program is delivering early wins. EBIT-positive stores in Germany rose to 34 from 19 a year ago, and the company is rolling out new revenue streams:
1. Eye health checks launching in June to capitalize on Germany’s aging population.
2. Subscription services for prescription glasses and sunglasses, starting this month, to boost recurring revenue.

Yet risks remain. Germany’s GDP growth forecast was cut to 0% due to U.S. tariffs and weak consumer sentiment, which could further pressure discretionary spending on eyewear. Additionally, the company’s active customer base has shrunk by 16%, a potential red flag if demand for premium products fails to offset volume losses.

Conclusion: A Fragile Turnaround, but Momentum Building

Mister Spex’s Q1 results mark progress toward its profitability goal, with narrowed losses and positive cash flow signaling financial resilience. Key metrics—such as improved gross margins, higher AOV, and EBIT-positive stores—suggest the SpexFocus strategy is working. However, execution risks persist: the subscription model’s success hinges on customer retention, and Germany’s stagnant economy could test demand for premium products.

With €70 million in cash and a streamlined cost structure, Mister Spex is positioned to weather near-term headwinds. If its new initiatives gain traction, the company could achieve its full-year guidance and solidify its place as a premium player in the €12 billion German eyewear market. Investors should monitor Q2 updates on subscription adoption and store productivity—early indicators of whether this pivot can deliver sustainable growth.

In the short term, Mister Spex’s shares may remain volatile, but the groundwork for a turnaround is evident. The question now is whether its focus on profitability over growth can outlast the economic slowdown.