Harrods has reported impressive gains in profit and revenue for the year ending 28 January 2023.
- The luxury department store’s turnover increased by 52% year on year, reaching £994.1 million, though still shy of pre-pandemic levels.
- Operating profit more than doubled compared to 2021, indicating a robust recovery amidst easing international travel restrictions.
- The store’s Gross Transaction Value exceeded 2019 figures, highlighting strong trading performance.
- Strategic investments and innovative offerings have positioned Harrods favourably within the market.
Harrods has experienced a notable rise in profit and revenue for the year leading to 28 January 2023. Turnover jumped significantly, rising by 52% year on year to £994.1 million. Though this figure remains below its pre-pandemic turnover of £1.04 billion, the growth suggests a steady recovery.
The operating profit of Harrods more than doubled during this period, achieving £202.7 million, a marked increase from the £71.4 million recorded in 2021. This surge in profitability is nearing the 2019 level of £257.1 million, reflecting effective business strategies and operational management.
Profit after tax also saw a dramatic increase, rising from £20.7 million in 2021 to £135.8 million. Such gains underline the efficacy of Harrods’ approach as it rebounds from the challenges posed by the pandemic.
The Gross Transaction Value excluding VAT increased by 51.1% year-on-year, reaching £2.1 billion. This surpasses the figure of just over £2 billion seen in 2019. Harrods’ success in this area can be largely attributed to its ability to attract both brand partnerships and a loyal customer base.
Tim Parker, Harrods’ Chief Financial Officer, described 2022 as a year of recovery and growth. He noted the phased lifting of international travel restrictions initially limited the return of global tourism, crucial to the UK economy. However, as restrictions eased, Harrods witnessed a strong trade performance, supported by its robust operating model and continual investments in both its physical and digital operations.
Parker emphasised that Harrods continued to outperform the broader market due to its well-established relationships with brands and customers, alongside the creation of innovative and exceptional offerings.
In 2022, Harrods continued its store masterplan project, which included introducing new dining destinations like Studio Frantzén. The focus on exclusive products and experiences remains central to its strategy, with further enhancements planned for 2023, including new womenswear and furniture rooms, along with further development in dining and private shopping services.
Harrods’ strategic focus and resilient operations have positioned it strongly for future growth.
