Harrods sales hit £900m but profits slide £35m
Despite this fall in profits, Harrods paid out a dividend of £180m to its Qatari owners, the same amount handed out the prior year
Sales at Harrods have surged to almost £900m in its latest full-year results, as revenues rose by 8% to £898.4m following a continued return in overseas visitors.In the year ended 3 February 2024, initial operating profits rose slightly to £162.9m, up from £158.4m the prior year, according to new filings on Companies House.
However, after a pensions loss on settlement, operating profits were down by £35m to £127m, while profit before tax fell from £470.8m to £162.2m.
Profits were down after the company’s trustees completed a deal with Scottish Widows to take on the liabilities of its pension fund, which led to a £46.2m writedown.
Despite this fall in profits, Harrods paid out a dividend of £180m to its Qatari owners, the same amount handed out the prior year.
A spokesperson for Harrods told The Guardian: “2023 was a year of good financial performance for Harrods, reflected in our sustained and robust growth that reaffirms our leading position in luxury retail.
“These results reflect a period of significant growth for the luxury industry in 2023. The current domestic and global economic environment has meant that current trading conditions in the luxury sector are more challenging.”
They added: “We remain confident in the fundamentals of the business, and the resilience of the luxury sector, and that the business sustains its longer-term growth and performance objectives.”
