In the latest financial year, Harrods has shown a marked increase in both profit and revenue, recovering from the impact of the pandemic.
- Revenue rose by 52% year-on-year, reaching £994.1 million, just shy of its pre-pandemic level of £1.04 billion.
- Operating profit more than doubled, escalating to £202.7 million from £71.4 million in the prior year.
- The profit after tax surged to £135.8 million, a substantial rise from £20.7 million in 2021.
- Gross transactional value exceeded 2019 figures, signifying a robust recovery attributed to strategic business investments.
The luxury department store, Harrods, located in Knightsbridge, has reported a strong financial performance for the year ending 28 January 2023. The turnover grew by an impressive 52% compared to the previous year, totaling £994.1 million. This figure is approaching the pre-pandemic turnover of £1.04 billion from the year leading up to January 2020.
Operating profit also saw a significant increase, more than doubling to reach £202.7 million, a notable improvement from £71.4 million in 2021. Despite not yet returning to the 2019 operating profit of £257.1 million, these results demonstrate a solid recovery trajectory.
Profit after tax experienced a remarkable rise, jumping from £20.7 million in 2021 to £135.8 million. This increase is indicative of Harrods’ successful efforts to regain its financial footing after the challenges posed by the COVID-19 pandemic.
The gross transactional value, excluding VAT, also painted a positive picture, climbing 51.1% year on year to £2.1 billion. This surpasses the 2019 figure and suggests that Harrods is performing well above market expectations.
Tim Parker, Harrods’ chief financial officer, highlighted 2022 as a year of recovery, emphasizing how the easing of international travel restrictions gradually boosted their trade. He credited their strong performance in part to Harrods’ strategic investments in both physical and digital infrastructures.
Harrods continues to thrive by reinforcing its long-standing relationships with brands and loyal customers through innovative and exclusive offerings. Notable developments in 2022 included new dining destinations within the store and ongoing enhancements aimed at providing unique shopping experiences that are exclusive to Harrods.
Looking ahead, the company remains committed to growth by curating exclusive products and expanding services including private shopping. Plans for 2023 involve new additions to their womenswear and furniture collections and further development of dining services.
Harrods is on a strong recovery path, showcasing resilience and strategic growth post-pandemic.
