HMV’s annual profits soared thanks to the resurgence of vinyl records and a focus on pop culture at the retailer.
Pre-tax profits at HMV owner Sunrise Records & Entertainment grew from £2m to £5.3m during the year to May 2023.
Meanwhile, sales at the business soared from £151m to £178m.
Vinyl sales jumped 11.7% last year to their highest point since 1990, trade association BPI reported, with almost 6m records sold during the period.
HMV owner Doug Putman said: “Sales growth is representative of the continued revival of vinyl but also of our expanded pop-culture, anime and K-pop offerings, which have growing fan bases amongst younger audiences.”
The music and entertainment company said it currently accounts for over half of vinyl sales across the country in some weeks.
A resurgence in vinyl sales helped the business with its turnaround, after it fell into bankruptcy back in 2019.
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However, Putman warned that the cost of living crisis and bad weather had led to a more challenging second half of 2023.
The CEO said: “Continuing to stay ahead of these sorts of challenges will be a key focus for the team and retail in general in 2024 as we see cost pressures across the board whilst also facing into squeezed consumer discretionary spending.”
In November, HMV reopened its iconic Oxford Street flagship after a four-year absence.
The location was the very first HMV store when it opened in 1921 and over the decades has hosted performances and signings from some of the world’s biggest bands and singers, including Kylie Minogue, Blur, and The Spice Girls.
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1 Comment. Leave new
Yes. Because vinyl is shockingly overpriced.