HMV sales on song as billionaire owner helps turn around high street icon

HMV has reported a significant increase in sales over the past three years under the ownership of Canadian billionaire Doug Putman.

The high street retailer recorded a turnover of £189.5m for the 12 months to 30 May, 2024, an increase from the previous year's £177.9m, as reported by City AM.

This follows HMV's sales figures of £150.7m in May 2022 and £90.3m in May 2021, a year heavily affected by the Covid-19 pandemic.

From February 2019 to May 2020, HMV's sales totalled £187.9m.

The company was rescued from administration in February 2019 by Canada's Sunrise Records, saving 100 stores and 1,487 jobs.

However, 27 stores were closed and 455 employees were made redundant.

The business had previously fallen into administration in December for the second time in six years. .

Sunrise Records, founded in 1977, was acquired by Doug Putman in 2014.

The latest accounts for HMV, filed with Companies House, reveal a slight decrease in operating profit from £5.2m to £4.9m during its most recent financial year.

Over the course of the year, the average number of employees increased from 1,375 to 1,544. .

DKB Group Holdings, the parent company of Sunrise Records and Entertainment, reported a rise in turnover from £178.9m to £191.4m, while operating profit dipped from £5.5m to £4.9m.

In November, City AM reported that HMV had put a halt to its plans to open additional new stores in 2025, attributing the decision to the government's tax-increasing Budget.

The retailer noted the challenges facing high street traffic, stating: "Traffic to the UK high street has been in decline for a number of years as customers increasingly shop online."

The company is addressing the risk of reduced footfall by offering unique or collectable products that entice customers to visit HMV stores specifically.

"Footfall decline risk is being managed by offering products with sufficient exclusivity or collectability that customers will make specific trips to the HMV stores to shop."

HMV also highlighted its investment in e-commerce as a strategy to adapt to changing consumer behaviours. "It has also been managed via continued investment in our e-commerce platform."

The statement from the board acknowledged significant trading impacts due to global conflicts and potential oil-driven inflation.

"Trading in recent years has been impacted significantly by the conflict in Ukraine and an escalation of the Israel Palestine war could exacerbate oil driven inflation, squeezing consumer spending and driving up silly cost."