Harrods smashes £2bn sales mark in record year

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Harrods has posted its eighth consecutive year of record sales and profits, helped by demand from overseas customers.

The world-famous retailer, which stocks luxury lingerie from premium brands such as Chantelle, Mimi Holliday and Wacoal, broke the £2bn sales mark for the first time in the year ended 28 January, 2017, accounts filed at Companies House show.

It said its gross transaction value grew by 23.3% to £2.09bn whilst group turnover climbed 16.6% to £919.7m.

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Harrods also disclosed pre-tax profits of £187.9m, up 44.9% on the previous period. This includes the profit on transfer of a subsidiary, Harrods Commercial Property Limited, to a related party, at a gain of £32.4m.

Excluding the impact of the sale of Harrods Commercial Property, operating profit was up 24% to £220.9m.

Harrods said in the Companies House report that while the businesses witnessed a robust start to the year in its trade, there was a “substantial impact” seen in demand from its overseas customers after the weakening of the British currency following the Brexit vote on 23 June 2016.

The period also saw a confirmed programme of significant capital expenditure, with total additions of £55.1m from £35.7m.

Harrods said its focus has continued on investing in luxury boutiques, primarily its Knightsbridge store, but also at airports. This level of capital expenditure is expected to continue in 2017.

 

 

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