[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]
Sales and annual results for the famous British luxury department store, which closed at the end of January, rose sharply. The institution, owned by the Qatar Investment Authority, benefited from the return of tourists.
Despite the Brexit and the abolition of VAT exemption for tourists from the EU, Harrods retains its aura and power of attraction with international customers.
The Institution of British Commerce has just published annual results, closed at the end of January 2023, which testify to its resilience, even more striking than the previous year.
Soaring sales and profits
During the 2022-2023 financial year, sales soared by 43% to £831.6 million (€974 million). Operating profit was up 185% on the previous year, at £158.4 million (135 million euros).
The rise in net income was even more spectacular: from £41.7 million to £433.3 million (369 million euros), a 939% increase!
These excellent results are due to a number of factors. Firstly, the department store was able to open its doors for the entire financial year, whereas in 2020-21, in the midst of lockdown, and again in 2021-22, it had been closed for 22 and then 10 weeks.
The return of tourists
Second advantage: this permanent opening has also met with success, thanks to the return of international tourists. And this despite a cost difference with Paris estimated at 20% by Harrods managing director Michael Ward for visitors from the European Union, deprived of duty free since a post-Brexit government decision.
Lastly, the company has sharply curbed its capital expenditure: at the end of the year, its cash position stood at £33.4 million (€39 million), with significant additional liquidity thanks to new borrowing facilities that can be drawn on, should the need arise.
Although in 1998 the department store had to close its Buenos Aires branch, destabilized by the Argentine crisis, since 2019 it has been developing a beauty chain in Great Britain, H Beauty (5 stores by 2022).
Bad memories of Covid
Already in 2021-22, Harrods had largely erased the bad memory of Covid, with sales up 35.5% to £581.9 million (€676.2 million). After a loss of 57.3 million pounds (66.59 million euros) the previous year, the department store also returned to profit, albeit modestly, as a result of cost inflation, at 41.7 million pounds (48.46 million euros).
According to some observers, Harrods has thus weathered the worst of the crisis. Nevertheless, along with luxury brands such as Burberry, it is one of the players campaigning for Britain to reinstate tax-free shopping for tourists. Last spring, the British Prime Minister, Rishi Sunak, hinted that he was not opposed to abolishing this measure.
Such a decision would provide a welcome boost to the British luxury goods trade.
Read also > Great Britain: the head of Burberry
Featured photo : ©Press [/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Sales and annual results for the famous British luxury department store, which closed at the end of January, rose sharply. The institution, owned by the Qatar Investment Authority, benefited from the return of tourists.
Despite the Brexit and the abolition of VAT exemption for tourists from the EU, Harrods retains its aura and power of attraction with international customers.
The Institution of British Commerce has just published annual results, closed at the end of January 2023, which testify to its resilience, even more striking than the previous year.
Soaring sales and profits
During the 2022-2023 financial year, sales soared by 43% to £831.6 million (€974 million). Operating profit was up 185% on the previous year, at £158.4 million (135 million euros).
The rise in net income was even more spectacular: from £41.7 million to £433.3 million (369 million euros), a 939% increase!
These excellent results are due to a number of factors. Firstly, the department store was able to open its doors for the entire financial year, whereas in 2020-21, in the midst of lockdown, and again in 2021-22, it had been closed for 22 and then 10 weeks.
The return of tourists
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo : © Press[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
Sales and annual results for the famous British luxury department store, which closed at the end of January, rose sharply. The institution, owned by the Qatar Investment Authority, benefited from the return of tourists.
Despite the Brexit and the abolition of VAT exemption for tourists from the EU, Harrods retains its aura and power of attraction with international customers.
The Institution of British Commerce has just published annual results, closed at the end of January 2023, which testify to its resilience, even more striking than the previous year.
Soaring sales and profits
During the 2022-2023 financial year, sales soared by 43% to £831.6 million (€974 million). Operating profit was up 185% on the previous year, at £158.4 million (135 million euros).
The rise in net income was even more spectacular: from £41.7 million to £433.3 million (369 million euros), a 939% increase!
These excellent results are due to a number of factors. Firstly, the department store was able to open its doors for the entire financial year, whereas in 2020-21, in the midst of lockdown, and again in 2021-22, it had been closed for 22 and then 10 weeks.
The return of tourists
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo : © Press[/vc_column_text][/vc_column][/vc_row]
