Selfridges results improve but there’s still plenty of work to do

Selfridges Retail has filed its accounts for the 48 weeks to early January 2025 and said that profitability improved, although revenue was technically down.

The company said that revenue fell to £774.6 million from £834.9 million, although key here is that the previous period was a 53-week one that ended in February 2024. And if we make an over-simplistic calculation by dividing the latest figure by 48 weeks and the earlier one by 53 weeks, it would actually show a better revenue result per week in the most recent almost-year.

But as well as the revenue falling because of the shorter financial year, the company said it dipped due to a focus on more profitable sales, particularly from the digital retail business. And this focus on higher margins, combined with effective cost controls, led to an increase in its operating profit.

So with that in mind, operating profit rising to £42.2 million from £27.7 million looks even more impressive than the headline numbers suggest. And although it still made a loss before income tax of £15.9 million this time, that was compared to a £41.9 million deficit a year earlier. It had an income tax credit in both years, although in the previous year it was £28.1 million and this time it was only £17.7 million. The end result was that the profit for the latest financial period was £1.8 million compared to a loss of £13.8 million last time.

The company said that its trade and turnover continued to “feel impacts from various economic factors”, including the reduced numbers of international visitors coming to the UK and shopping in it stores (an obvious reference to the lack of tax-free shopping for tourists in the UK). But it also suffered from disruption to some supply chains due to worldwide conflicts and shipping route delays, as well as inflation and exchange rate fluctuations, price increases across luxury brands, and the overall higher cost of living.

During the shorter year in question, the company had seen a partial change of ownership with Austria-based Signa Retail bowing out as minority owner and the public investment fund (PIF) of Saudi Arabia taking over the holding.Thailand’s  Central Group retains its majority shareholding with PIF now its minority partner. 

Analyst view

So what do analysts think of the company’s results in what was clearly a turbulent year for it? Ashley Adeyemi, retail analyst at GlobalData, said that while it’s reduced its losses, “it has yet to break free from the drag of a weakening luxury market”. 

But she highlighted that it’s doing plenty to reverse its losses: “The department store’s strategy continues to centre on experiential retail, using events, services and in-store destinations to drive loyalty and repeat visits as a way of creating greater resilience in a tougher luxury market. Its Selfridges Unlocked membership scheme has been further embedded, with expansion in 2025 to reward customers for time spent across its destinations, from restaurants and cinemas to beauty services.”

However, she has issues with this: “While innovative, this approach raises questions about conversion, with the retailer acknowledging it is possible to reach the top ‘Very Selfridges Person’ tier without making a purchase. Without clearer disclosure on whether increased engagement is translating into spend, the commercial impact of this strategy remains uncertain.”

She had more praise for other initiatives that “demonstrate stronger evidence of traction”. Beauty saw “robust results” following the refurbishment of its London beauty hall, with sales up 10%, appointments up 22% and beauty concierge bookings ahead by 135%. The ReSelfridges circularity programme “also resonated with customers” (especially younger ones), with pre-owned bag sales up 56% and watches up 90%.

And its pop-up Corner Shop space hosted 32 immersive brand experiences, attracting more than 60,000 visitors, “helping to reinforce Selfridges’ positioning as a cultural as well as retail destination”.