Harrods returned to a pre-tax profit of £84.9 million in the year to the end of January, according to its latest accounts, a year after compensation payouts to victims of its former owner Mohamed Al Fayed pushed the department store into a loss.
The Knightsbridge store recorded a pre-tax loss of just over £34 million in the previous year, driven by difficult market conditions and £62.5 million in compensation paid to victims of Al Fayed’s abuse.
Turnover rose 1.2 per cent to £1.1 billion in the latest financial year. Operating profit before exceptional items was £172.3 million, down from £177.7 million the year before, which Harrods said reflected ongoing investment in employee salaries and increased distribution costs.
Harrods said an average 3.2 per cent pay rise for employees had cost it £8.5 million, while increased employer national insurance contributions added a further £5.7 million.
Geoff Weaver, Harrods’ chief financial officer, said the results showed “further stabilisation and modest growth”.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
