// HMV returns to profit for the first time since it was rescued from administration in 2019 as vinyl sales surge
// Pre-tax profits topped £1.97 million from a loss of £243,000
HMV has returned to profit for the first time since it was bought out of administration in 2019 as shoppers snap up a record amount of vinyl albums.
HMV and Fopp owner Sunrise Records and Entertainment posted pre-tax profits jumped to £1.97 million for the year ending 30 May 2022 from a loss of £243,000 the previous year.
Sales skyrocketed 67% to £150.79 million for the year.
The positive performance comes as vinyl record sales surpassed CDs for the first time in 35 years in 2022 with more than 5.5 million units sold.
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Taylor Swift’s Midnights album and Harry Styles’ Harry House were among the top best sellers for 2022, while other music fans sought out collectible editions of classic albums from the likes of David Bowie and The Beatles.
HMV made the decision to move away from CDs and focus on vinyl under Sunrise Records and Entertainment owner Doug Putman and returned to making music after 43 years under its new record label, 1921 records.
Putman said: “Vinyl has enjoyed an ongoing revival, and many of the world’s biggest music artists now make vinyl a key part of their new album promotions, attracting collectors of all ages.
“Looking ahead, we expect another solid performance,” he said.
“We’re committed to further expanding the HMV store estate where there are opportunities that make sense.”
HMV opened 10 new stores in 2022, including a 6,738sq ft shop in Dudley, which is stocked with 4,700 vinyl albums.
The music retailer was snapped up by Putman in 2019 after it fell into administration for the second time due to climbing rents and weakened consumer confidence.
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