Harrods, the renowned luxury department store in Knightsbridge, has experienced substantial financial growth.
- Turnover has surged by 52% year-on-year, reaching £994.1 million, though it remains below the pre-pandemic figure.
- Operating profit more than doubled to £202.7 million, showing a strong recovery from the previous £71.4 million.
- Profit after tax skyrocketed to £135.8 million, significantly higher than £20.7 million in the prior year.
- A robust trading performance, partly driven by the lifting of travel restrictions, contributed to a gross transactional value rise.
Harrods, a prestigious department store located in Knightsbridge, has reported a noteworthy increase in both profit and revenue for the year ending 28 January 2023. Turnover experienced a remarkable 52% growth compared to the previous year, reaching £994.1 million. However, it still falls short of the £1.04 billion achieved before the pandemic in January 2020.
The store’s operating profit more than doubled during this period, soaring to £202.7 million from £71.4 million in 2021. Although it has not yet reached the £257.1 million realised in 2019, this improvement signals a strong recovery trajectory.
Further illustrating Harrods’ financial resurgence, profit after tax increased dramatically to £135.8 million, a significant leap from the £20.7 million recorded in the prior year. This surge underscores the effectiveness of the store’s operational strategies during a challenging period.
In terms of gross transactional value, which excludes VAT, Harrods reported a 51.1% year-on-year increase, totalling £2.1 billion. This figure is comparable with that of 2019, exceeding just over £2 billion, indicative of a robust trading performance.
Tim Parker, chief financial officer at Harrods, noted, ‘2022 was a year of recovery and growth as we, like many others, continued to emerge from the impact of the Covid pandemic.’ He highlighted the initial challenges posed by travel restrictions early in the year, which gradually lifted, contributing to the burgeoning global tourism trade critical for the UK market.
Mr. Parker attributed the successful performance to Harrods’ robust operating model, strategic investments in both physical and digital outlets, and the cultivation of strong relationships with both brands and loyal customers. The store masterplan project, ongoing development of in-store dining options, and the introduction of new offerings such as Studio Frantzén have further enhanced the shopping experience.
Looking forward, Harrods remains committed to driving future growth by curating exclusive products and experiences unique to the store. Plans for 2023 include new womenswear and furniture rooms and the expansion of private shopping services.
Harrods’ financial results for the year ending January 2023 reflect a strong recovery and strategic growth, positioning it well for future developments.
