Despite a notable increase in sales, Selfridges has reported a significant rise in financial losses.
- Pre-tax losses for the parent company reached £340m, more than doubling from the previous year.
- Sales for the company surged by 95%, attributed to increased finance costs including interest on borrowings.
- The group has reduced its workforce by 500 jobs, now employing around 7,300 people globally.
- Property values saw a substantial decline, with asset devaluation exceeding £600m.
Selfridges has reported its financial losses have more than doubled, despite experiencing a significant increase in sales. According to the latest filings by Cambridge Retail Group Holding, the company recorded a pre-tax loss of £340 million for the year ending 3 February, compared to £126 million in the previous period.
This financial downturn coincides with a remarkable surge in sales, which increased by 95% to reach £1.6 billion. However, this sales growth was insufficient to offset the financial losses, which are partly attributed to a rise in the company’s finance bill, including higher interest payments on borrowings.
During the year, the company implemented workforce reductions, eliminating 500 jobs. Currently, Selfridges and its associated brands, Brown Thomas and Arnotts in Ireland and De Bijenkorf in the Netherlands, employ approximately 7,300 people.
Separate filings for Selfridges in the UK reveal that the department store’s losses expanded to nearly £42 million over the same period, up from £39.3 million in the previous year. This increase occurred despite the company’s observation of an additional million visits to its stores in the last year.
The company’s property assets have suffered a considerable devaluation, with valuers marking down £638.6 million from its previous £3.1 billion valuation. This includes the landmark Oxford Street store in London, reflecting a reduction of 20.6%.
Despite sales growth, substantial financial challenges persist for Selfridges and its parent company.
