Despite a significant increase in sales, Selfridges faces widening losses in its latest financial results.
- The company’s pre-tax losses more than doubled from £126 million to £340 million.
- Sales, however, rose by 95%, reaching a substantial £1.6 billion.
- The company reduced its workforce by 500, now employing around 7,300 individuals.
- Property values saw a significant decline, with a reduction of over £600 million.
In the latest financial filings for the Cambridge Retail Group Holding, which controls Selfridges under the ownership of Central Group and Saudi Arabia’s Public Investment Fund, pre-tax losses surged to £340 million. This marks a significant increase from a previous £126 million. Meanwhile, sales figures tell a different story—climbing an impressive 95% to reach £1.6 billion. However, this financial gain was offset by increased financial burdens, including higher interest payments on borrowings.
The retail conglomerate, which includes brands such as Selfridges in the UK, Brown Thomas and Arnotts in Ireland, and De Bijenkorf in the Netherlands, implemented a cost-reduction strategy by cutting 500 jobs. This adjustment brought its workforce down to approximately 7,300 employees.
Within the UK, Selfridges’ individual performance reflected an expansion in losses, reaching nearly £42 million, up from £39.3 million. Despite these financial challenges, the group expressed satisfaction with the results, highlighting a surge of ‘a million more visits’ to its stores over the past year.
Compounding these issues, the group’s property assets witnessed a devaluation exceeding £600 million, triggered by mounting financial obligations. Valuers slashed the property assets’ worth by £638.6 million, representing a 20.6% drop, including the prominent Oxford Street flagship in London.
Selfridges faces a complex financial landscape, balancing rising sales against significant losses and declining property values.
