Harrods enjoyed its highest turnover on record as it raked in nearly £900m of sales in its most recent financial year.
Sales for the luxury retailer covering its Knightsbridge flagship and online operations jumped 8% to £898.4m in the 53 weeks to 3 February, up from £831.6m, filings on Companies House show.
The record sales helped to push operating profit up 2% to £162.9m, compared to £158.4m the year before.
However, its pre-tax profits plunged 65% from £470m to £162m, following a pension buy-in with Scottish Widows.
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Across the wider group, taking into account of its Harrods Beauty, Harrods Aviation, Harrods Estates and Harrods China businesses, sales surpassed rose 8.2% to £1.07bn with gross transaction value up 6.6% to £2.25bn.
The retailer said in a statement that “2023 was a year of good financial performance for [the business], reflected in our sustained and robust growth that reaffirms our leading position in luxury retail”.
“Underpinned by 175 years of operational excellence, customer loyalty, and trusted brand offerings; Harrods enjoyed another strong year of trading with a turnover of £1.07bn, confirming our stability and resilience in the face of market dynamism.”
Throughout last year, the retailer unveiled new swimwear and eveningwear spaces at the Brompton Road flagship, re-launched its Dining Hall and upgraded the 3,890 lights covering Harrods’ façade to LED bulbs.
It noted that “the current domestic and global economic environment has meant that current trading conditions in the luxury sector are more challenging”.
Managing director Michael Ward called on the former UK government last year to “stop burying its head” and u-turn its removal of VAT-free shopping for overseas customers, adding: “I think it might be time for them to wake up and smell the coffee”.
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