HAMBURG, Germany—The Fielmann Group (ETR: FIE), a global eyewear provider, reported that in the first nine months of 2024, the group's consolidated sales increased by 13 percent to €1.69 billion, compared with €1.50 billion in the same time period of 2023. The company noted that 5 percent of this increase was due to organic growth, and 8 percent was contributed by U.S. acquisitions. The company, which acquired Shopko Optical earlier this year, and closed on the acquisition of SVS Vision in 2023, reported marked growth in 2024 despite a recession and low consumer confidence levels.

Fielmann grew its market shares in major countries, despite what it stated as a challenging market environment in Europe with Germany, Switzerland and Austria increasing their sales between 5 percent to 9 percent compared with the same period last year. Sales in Spain and Poland grew significantly, up 10 percent and 31 percent, respectively. 

In an earnings call on Friday, the company's chief financial officer Steffen Batjer said the acquisitions have “opened up the U.S. market,” particularly in the upper Midwest. Batjer noted that U.S. acquisitions contributed €127 million during the first 9 months of the year, compared with €9 million in the same time period of 2023, an overall increase of 8 percent. 

Batjer added that the company has been working to improve its adjusted EBITA, which came in at €379 million, up 13 percent  compared with the same time period of 2023. The adjusted EBITDA margin in Europe continued to increase by 1.1 margin points to 23.6 percent, due to the company's improved sell-out structure as well as a rigorous implementation of a cost leadership program, the company reported. 

Batjer noted that the U.S. market has presented unique challenges compared to the European market, however, he added Fielmann USA starts at a significantly lower base, and as a result, Fielmann Group’s adjusted margin remains stable at 22.4 percent.

He said that Europe saw a significant drop in sunglasses purchases this year due to poor weather, growing just 1 percent overall, while prescription eyewear sales grew by 12 percent and contact lens sales grew by 26 percent. The company’s acoustics sector grew by 10 percent. Batjer said he expects to see sales drop slightly in European markets heading into Christmas, but North America sales are expected to spike as customers use up their insurance benefits. 

He said the U.S. market is having an impact on sales performance. “We firmly believe in the U.S. market,” he said. “The U.S. is dragging us down a bit, but we are on it.”

Batjar stated that the company has no plans for further acquisitions in 2025, noting that the focus will be on getting the U.S. market integrated into its existing business structure. He said the company plans to open 30 to 40 stores organically in 2025 with “a handful of these in the U.S.” depending on micro market conditions. 

The Fielmann Group confirmed its outlook for fiscal year 2024. The company expects consolidated sales of approximately €2.3 billion, including the consolidation of six months of Shopko Optical’s results, and that profitability remains in line with the outlook and guidance published in its half-year report as of June 30, 2024. 

Company CEO Marc Fielmann said he was optimistic about the impact the company will have on the overall eye health of its customers in the future. The Fielmann Group said in a statement following the earnings call, “Many Europeans do not have a regular eye check-up and in Germany alone, thousands go blind every year unnecessarily. Together with our partners in ophthalmology, we can change this by making eye health services easily and quickly available. This way, we bridge the gap of missing eyecare services and help avoid disastrous consequences. This is one step further toward our purpose—to help everyone hear and see the beauty in the world.”