Harrods records seventh record year in a row
Harrods has achieved its seventh year in a row of record numbers, according to figures to be filed at Companies House next week.
According to The Times today, the accounts will show sales of £1.44bn in the 12 months to the end of January 2016, which is a rise of 4% on the previous year.
Pre-tax profits were up from £141.5m to £168m while operating profits leapt 40% to £178.1m, in spite of the department store investing heavily in infrastructure. Further work, including a make-over of its famous food hall, is still in the pipeline.
A dividend of £100.1m was paid to its owners Quatar Holding which bought Harrods from Mohammed Al Fayed in 2010. Since Quatar Holding bought the business it has invested more than £400m.
Harrods CFO John Edgar said the results were particularly pleasing since they represent a period when sterling was strong and the Chinese were travelling and spending less, "So for us to grow our sales by 4% was a good result," he told The Times.
Managing director Michael Ward added that the store was now experiencing a boost from the Brexit vote, saying since sterling's fall, the group had seen a "massive pick-up" in sales.
London has now become one of the cheapest places in the world to buy luxury goods following the huge drop in the pound's value following the EU referendum result. Mainstream retailers, however, have seen their manufacturing costs increase as a result with some, such as Next, saying they may have to pass on price increases to customers next Spring.
