Business

Harrods sales slightly up but profits dip from flagship revamp

by Huw Hughes
16 Oct 2019

Harrods has reported a slight increase in sales in the past year, but a dip in profits due to an increase in capital expenditure relating to a revamp of the company's flagship Knightsbridge store.

The British department store chain saw a 3 percent fall in pre-tax profits to 171.6 million pounds for the year to 9 February. The company said it spent 64.1 million pounds in the year as part of a major store revamp of its 90,000-square-foot beauty hall at its flagship Knightsbridge store. This compares to 55 million pounds spent the year before. The company added that capital expenditure is expected to increase in 2019.

Despite a drop in profits, sales increased to 868.6 million pounds from 862.5 million pounds for the same period a year before.

The full-year report also revealed that Harrods Qatari owners, Qatar Holding, paid themselves a 125 million pound dividend despite a dip in the luxury department store chain’s profits. The dividend brings the total payouts handed to the group to 900 milion pounds.

In 2010, Qatar Holding bought Harrods for 1.5 billion pounds from Egyptian businessman Mohamed Al-Fayed.

Photo credit: FashionUnited