Selfridges has returned to profit as stronger store sales and tighter cost control helped it deliver a sharp improvement in its annual performance.
The company posted a pre-tax profit of £13m for the 52 weeks to 3 January 2026, swinging from a £15.9m loss in the previous financial period.
Revenue climbed seven per cent to £830.8m, while operating profit surged 88 per cent to £79.7m as it benefited from higher margins and increased sales across its stores.
The results represent a significant turnaround for Selfridges, which last year reported its fifth consecutive annual pre-tax loss after revenues fell to £775m. The prior reporting period covered 48 weeks, rather than 52.
Chief executive André Maeder said the performance demonstrated the retailer’s ‘resilience amid a challenging economic and retail environment’.
However, the boss renewed calls for the government to reinstate tax-free shopping for international visitors, arguing the return of the VAT refund scheme would help unlock further growth for retailers and the wider high street.
Selfridges has repeatedly criticised the removal of VAT-free shopping for overseas visitors in 2021, previously warning that the move had made the UK less attractive to wealthy international shoppers and encouraged tourists to spend in rival European destinations instead.
The retailer’s cash reserves also rose to £166.3m during the year.
Selfridges operates four UK department stores, including its Oxford Street flagship, two sites in Manchester and one in Birmingham, alongside its ecommerce business.
It is jointly owned by Thailand’s Central Group and Saudi Arabia’s Public Investment Fund, which hold 60 per cent and 40 per cent stakes respectively.
Click here to sign up to Retail Gazette‘s free daily email newsletter
