Hobbycraft has returned to profitability, reporting a statutory profit of £8.7m for the 52 weeks ended 15 February 2026, compared with a loss of £10.1m in the previous year, as adjusted trading EBITDA more than tripled to £15.5m (FY25: £4.8m).
Like-for-like sales rose by 2.0%, against a 4.3% decline in FY25, with growth accelerating to 4.0% in the second half of the year. Total revenue was £210.4m (FY25: £215.9m), reflecting the restructuring of the store estate, which ended the year with 107 stores compared with 124 a year earlier. Trading gross margin was held at 59.0%.
The arts and crafts retailer is owned by Modella Capital, which acquired Hobbycraft from Bridgepoint in 2024, and will file its accounts with Companies House during the week commencing 9 November 2026.
The recovery follows a turnaround plan carried out by the executive management team and supported by its shareholder, which included restructuring the store estate, reducing operating costs and improving stock management. Drawn borrowings under its asset-backed revolving credit facility fell by £5.7m to £17.9m (FY25: £23.6m), while inventory was reduced by £7.9m. Together with stronger second-half and peak seasonal trading, the measures allowed Hobbycraft to meet its restructuring milestones ahead of plan and exit its Company Voluntary Arrangement (CVA) on 25 June 2026, two years ahead of schedule.
Active membership of the Hobbycraft Club loyalty scheme grew to a record 2.8 million (FY25: 2.7 million).
“FY26 has been a pivotal, transformative year for Hobbycraft. While the retail sector faced continuing inflation and subdued consumer confidence, the decisive actions we took under our turnaround plan have right-sized our cost base, revitalised our core estate and returned the business to robust profitability.”
Graeme Campbell, Acting Chief Executive Officer, Hobbycraft
Trading was supported by growing demand for screen-free hobbies, mindful making and creative wellbeing. Sales in model making and crochet rose by 45% and 24% respectively over the past 52 weeks compared with the previous 52 weeks, while online searches for Japanese “Kawaii” crafting items increased by 221%. The retailer’s Power of Making report, produced with its mental health charity partner Mind, found that 8.8 million UK adults use crafting to support their mental health and that 91% agree children should spend less time on digital devices.
With its finances stabilised, Hobbycraft has set out a growth strategy that includes positioning the brand as “The Home of Creativity” and piloting complementary retail formats, among them trials at three new garden centre locations and the continued rollout of concessions such as its Post Office partnership. Drawing on its TikTok successes and the lessons of Hobbycraft TV, it plans to expand into social commerce, including the imminent launch of TikTok Shop and a focus on short-form vertical video. The business is also evaluating international expansion opportunities in Ireland, Germany and Poland.
“Achieving an exit from our CVA two years ahead of schedule is testament to the extraordinary commitment and passion of our colleagues across our stores, distribution centre, and head office. With our estate stabilised, debt reduced, and 2.8 million active Club members, we are energised to drive our growth strategy forward – positioning Hobbycraft as ‘The Home of Creativity’ and the undisputed leader in arts, crafts, and creative hobbies.”
Graeme Campbell, Acting Chief Executive Officer, Hobbycraft
“We are incredibly proud of the efforts and achievements of our dedicated colleagues across the country, in stores, the distribution centre and head office, in relaunching a refreshed and revitalised Hobbycraft proposition to customers across the UK. The management team, many of which have joined our family as part of this hugely successful turnaround, have delivered an amazing set of results and have much more to achieve, both in our home market and overseas. Our sincere thanks also go to the many stakeholders across the entire supply chain in supporting us through what has been a very busy last twelve months.”
Joe Price, Chief Executive, Modella Capital
Hobbycraft sells more than 25,000 products through over 100 stores, its website and app, alongside expert-led workshops and thousands of digital project guides.
Terry Clark is the Publisher and Content Director of 365 Retail, with more than a decade of experience covering retail design, technology innovations, store openings and the wider retail industry. He also works closely with leading retailers, suppliers, agencies, events and industry awards across the UK.
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