Harrods returns to profit in full year results
Harrods has returned to profits for the year ending 29 January 2022, revealing a £121.9 million increase in operating profit to £55.5 million.
The luxury retailer's profit before tax totalled £41.7 million, up £99 million from £-57.3 million in 2020.
Sales increased 35.5% to £581.9 million, compared to £429.5 million in 2020 and £870.8 million in 2019.
Tim Parker, Chief Financial Officer at Harrods, said: "Our performance was greatly impacted by our Knightsbridge store being closed for ten weeks during the third lockdown, international travel remaining subdued and the suspension of the VAT Retail Export Scheme. However, despite this, we are delighted to share that Harrods performed well ahead of our initial expectations, with Gross Transaction Value up 42% on 2020 and the business strongly improving profitability.
"Our ability to adapt our trading model by establishing remote selling platforms and virtual personal shopping services showcased the agility of our colleagues during the period. We also continued to invest in our physical and digital offering during the pandemic, showcasing our confidence in the outlook for the business.
"Trade performance towards the end of the year was particularly encouraging, highlighting the strength of our long-standing customer and brand relationships as well as the continued resilience of the luxury market.
"While performance remained below pre-pandemic levels, and our short-term view remains cautious, we have confidence in maintaining the momentum from 2021 and are optimistic on our return to long-term, sustainable growth."