While Dutch eyewear brand Ace & Tate sees its sales grow, it continues to make substantial losses. The company now wants to shift its focus to profitable growth and cut costs.
“In line with expectations”
In 2022, Ace & Tate’s turnover rose from 43 to 55.5 million euros, but at the same time its losses went up from 7.7 to 11 million euros. Labour costs rose by as much as 50 %, a result of more store openings. In its annual report, the company says that “Ace & Tate’s negative results are in line with expectations as we choose to invest in growth and international expansion”, Quote reports.
The company previously converted debt of fourteen million euros into shares, but is now also considering cutting costs. among the options being considered are cost savings at the head office, a reduction in marketing costs, asking rent discounts from property owners and slowing down the pace of expansion.
Ace & Tate was founded in 2013 by Dutch millionaire Mark de Lange, and has since grown to a chain with 86 shops in ten countries.