Harrods has seen its highest ever turnover as sales surge to near £900m

In the 53 weeks to February 3, Companies House filings show Harrods saw an 8% rise in revenues from £831.6m to £898.4m.

Operating profit rose 2% from £158.4m to £162.9m year-on-year, but pre-tax profit declined by £60m to £111.5m after Harrods’ pension fund trustees bought an insurance policy from Scottish Widows to take on the fund’s liabilities.

Across the wider Harrods group, which makes up the Harrods Beauty, Harrods Aviation, Harrods Estates and Harrods China businesses, sales increased by 8.2% to reach £1.07bn. 

The department store’s sales and profits have improved strongly since the pandemic, as the store relies on spending by foreign visitors.

Harrods’ bosses, along with other big names in luxury, have been critical of the scrapping of VAT-free shopping for overseas tourists, as managing director Michael Ward previously said that Paris has done “disproportionately well as a consequence of this”.

The group warns of the current “challenging”  trading conditions in the luxury sector.

Speaking on the results, a Harrods spokesperson said: “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.

“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.”