Harrods Group: 2024 was a “year of stable trade”

Harrods Group, which includes the luxury Knightsbridge department store and online business, as well as its airport concessions, its H Beauty stores and the export of Harrods-branded merchandise, has reported a 17 percent decline in operating profit year-on-year to 177.7 million pounds for the 52 weeks to February 1, 2025.

In its FY2024 financial accounts filed this week, Harrods Group stated that overall turnover was up 0.6 percent to 1.08 billion pounds, while also reporting a loss before tax of 34.4 million pounds, due to the luxury slowdown, and the absence of the VAT-reclaim scheme for foreign shoppers.

Michael Ward, managing director of Harrods, said in a statement: “2024 was a year of stable trade for Harrods with a turnover of 1,081.7 million pounds, reflecting a 0.6 percent increase on 2023 despite trading conditions in the luxury sector remaining challenging and once again showing outperformance by Harrods of the luxury industry as a whole.

“Our results demonstrate the resilience of Harrods’ business strategy of commitment to exceptional customer offerings and ongoing investment in this period across our Knightsbridge store, including the continued redevelopment of our womenswear spaces and renovation of The Georgian restaurant.

“Operating profit for the period, before exceptional items, amounted to 177.7 million pounds, a decrease on 2023’s 213.9 million pounds reflecting ongoing investment in employee salaries and increased distribution costs, but continuing to demonstrate the strength of the fundamentals of our business.”

The accounts also have “significant” exceptional costs noted this year, including the strategic digital transformation of the company’s enterprise resource planning system and a provision for compensation for survivors of historic abuse perpetrated by Harrods' former chairman and owner, Mohamed Fayed.

The Harrods Redress Scheme was launched on March 31, 2025, and has seen more than 100 victims enter the compensation scheme. Compensation awards and interim payments began being issued to eligible survivors at the end of April 2025, and the scheme will remain open until March 31, 2026.

Ward added: “The current domestic and global economic environment means that current trading conditions in the luxury sector remain challenging. However, we remain confident in the strength of the business, and the resilience of the luxury sector, and that we will continue to drive progress towards longer-term growth and performance objectives.”