Harrods rebounds in latest year as pandemic becomes more distant memory

By

Sandra Halliday

Published
Aug 21, 2023

Luxury department store Harrods has released its results for the year to the end of January 2023 with the figures highlighting its bounce-back post-pandemic. 

Its gross transaction value increased by a massive 47% to £2.3 billion and turnover rose 42.9% to £831.6 million. That came as the Knightsbridge, London store was open throughout the year, whereas in the previous financial year it was closed for 10 weeks due to lockdowns.

But it wasn't just the fact that it was able to open that was important. The company also said it saw a strong recovery in trade as the impact of the pandemic, subsided and both local and overseas customers returned. 

The business generated an operating profit in the period of £158.4 million, which was a huge increase compared to the £55.5 million of the year before. And net profit surged to £433.3 million from £41.7 million. 

Another benefit came as the year saw a reduction in capital expenditure and it had cash on its books of £33.4 million at the end of the period, as well as significant additional liquidity through amended borrowing facilities that it could use if required. 

It all points to a strong future for the business, particularly as it also expands in the beauty arena via its H Beauty chain. It also suggests that should the current or any future government in Britain decides to reinstate VAT-free shopping for tourists and extend it to EU visitors, the company would be one of the main beneficiaries.