Harrods has reported a significant rise in both profit and revenue for the fiscal year ending 28 January 2023, despite remaining below pre-pandemic levels.
- Turnover surged by 52% year-on-year, reaching £994.1m, but has yet to surpass the 2020 figure of £1.04bn.
- Operating profit more than doubled in the same period, climbing to £202.7m from £71.4m in 2021.
- Profit after tax experienced a substantial jump from £20.7m in 2021 to £135.8m.
- Gross transactional value climbed over 51%, hitting £2.1bn, displaying continued recovery from pre-pandemic figures.
Harrods has experienced a notable rise in profit and revenue for the fiscal year ending 28 January 2023. Although turnover increased by a significant 52% to £994.1 million, it has yet to reach the pre-pandemic levels of £1.04 billion achieved in 2020.
The department store has also seen a remarkable surge in operating profit, more than doubling from £71.4 million in 2021 to £202.7 million. This figure is approaching the £257.1 million recorded in 2019, signalling a strong recovery trajectory.
Profit after tax witnessed a dramatic increase, soaring from £20.7 million in 2021 to reach £135.8 million. This surge highlights the effectiveness of Harrods’ strategic responses to market conditions.
Furthermore, the gross transactional value at Harrods rose by over 51% to reach £2.1 billion, a figure that exceeds the pre-pandemic level of just over £2 billion from 2019.
According to Tim Parker, the Chief Financial Officer at Harrods, 2022 marked a year of recovery and growth as the store emerged from the impacts of the pandemic. He noted that the easing of international travel restrictions played a crucial role in restoring the global tourism trade, an essential component of the UK market.
Parker highlighted Harrods’ robust operating model and investment in its physical and digital infrastructure. He attributed the store’s strong performance to its exceptional offerings and innovative customer experiences, such as new in-store dining destinations and the continuation of its store masterplan project.
Looking ahead to future growth, Harrods remains committed to expanding its exclusive products and experiences, with plans for new womenswear and furniture rooms, as well as enhancements to its dining options and private shopping services.
Harrods’ strong financial results underline its strategic agility and commitment to innovation amid a recovering market.
