HMV back to profit as vinyl outsells CDs for first time in 35 years
HMV has posted a return to profit for the first time since it was bought out of administration in four years as a resurgence in vinyl boosts sales.
The retailer’s parent company, Sunshine Records and Entertainment, posted sales of £150m for the 12 months to May 2022, a jump from £90m the year before. This helped the business return a £1.9m profit, an increase from £240,000 in 2021.
HMV was bought out of administration in 2019 by Canadian businessman Doug Putman for a reported C$1.5m (£920,000), after having previously been bought by restructuring firm Hilco when it also collapsed in 2013.
Sunshine Records described the improvements in profit as a promising step forward against the slow reduction of COVID restrictions from June onwards and the resurgence of the Omicron variant in December.
It also noted that high street footfall has been on the decrease over the last few years, but added that HMV is offering products with sufficient exclusivity or collectibility to entice customers to make trips specifically to physical stores.
The decrease in COVID restrictions leading to increased consumer confidence was also cited as a reason for the retailer’s increased success.
In Sunshine Record’s report, Putman praised the retailer’s performance: “During the year, HMV demonstrated their appetite for stretching customer reach by opening more stores and are set to continue the focussed expansion building on the brand and diversified growth.”