Hobbycraft has returned to profit after a major turnaround programme, with the arts and crafts retailer benefiting from both operational improvements and growing consumer interest in creative, screen-free hobbies.
The retailer reported statutory profit of £8.7m for the 52 weeks to 15 February 2026, compared with a £10.1m loss a year earlier. Adjusted trading EBITDA more than tripled to £15.5m, while like-for-like sales rose 2%, accelerating to 4% growth in the second half of the year.
The performance marks a significant milestone in Hobbycraft’s recovery following a restructuring programme that included store closures, cost reductions and tighter stock management. The retailer finished the year with 107 stores, down from 124, and reduced drawn borrowings by £5.7m to £17.9m.
Brits get creative
The improved results also come as creative hobbies are enjoying renewed popularity among UK consumers. A 2026 study commissioned by National Rail found that 34% of adults prefer to relax with a creative hobby rather than spending time in front of a screen, while reading, creative writing and other non-digital activities featured prominently among the skills people most wanted to learn.
This aligns with findings from Hobbycraft’s Power of Making report with its key mental health charity partner, Mind, which highlighted that 8.8 million UK adults use crafting to support their mental health and 91% agree children should spend less time on digital devices.
The trend has been amplified by social media movements such as “grandma-maxxing” and cottagecore, alongside the popularity of television programmes including The Great Pottery Throw Down and The Great British Sewing Bee, helping to fuel interest in crafting, making and other hands-on pastimes.
Hobbycraft said it has seen particularly strong demand in categories linked to those trends, with model-making sales increasing 45% year-on-year and crochet sales up 24%. Searches for Japanese-inspired “Kawaii” crafting products rose 221%.
“A transformative year”
“FY26 has been a pivotal, transformative year for Hobbycraft,” said Graeme Campbell, acting chief executive of 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.”
The retailer exited its Company Voluntary Arrangement (CVA) in June 2026, two years ahead of schedule, and now plans to build on its 2.8m-strong loyalty membership base through social commerce, new store formats and potential international expansion.
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