Fenwick results: not there yet but definite signs of progress

Fenwick’s performance improved — profit-wise at least — in the year to January even though its sales fell due to the closure of its New Bond Street, London flagship.

The premium department store’s latest accounts show turnover for the year of £177 million, with gross sales of £291.5 million. In the previous year, it had reported turnover of £184.2 million and gross sales of £303.6 million (both numbers lower than the previous 12 months). But while the new figures were clearly lower still, the company said that when the Bond Street store that was sold and ceased trading during 2024 was factored out, sales rose 4.7% in the latest period.

And as mentioned, profits — or in this case losses — improved. It reported a pre-tax loss on ordinary activities of £36 million, narrower than the equivalent £49.1 million loss of the previous year. So that’s progress, although there’s undeniably still work to do.

And while its cash balance dropped by £94.2 million to £84.9 million, a key reason was the repayment of an external loan of £60 million. So we’re now talking about a business that’s just-about-debt-free and cash-rich, leaving it plenty of scope to continue its turnaround plan.

It’s currently deep in the three-year strategic plan designed to drive sales and margins higher, and boost operational efficiency in its remaining stores.

The company, which was a late-comer to digital, has been improving its digital offer with a new online platform; striking key partnerships (such as the premium one with its local football team Newcastle United); upgrading key spaces including the addition of a new £40 million Beauty Hall in the Newcastle flagship; and launching eye-catching new campaigns and loyalty initiatives.

Its chair Sian Westerman said of its latest figures: “These results mark important progress as we continue to reshape the business for long-term sustainability. The strategic changes under way are beginning to take effect, and the board remains confident in the direction being taken. While the retail environment remains challenging, Fenwick is becoming a more focused, agile business with a clear plan for profitable growth.”

And executive deputy chair Mia Fenwick also stressed that the improvements it’s making are delivering results. This was particularly noticeable in the second half of the latest year “and has continued into 2025…we’re excited about the future”.