Losses continue at Harvey Nichols but improvements have been made

British department store Harvey Nichols is seeing a slight turnaround in its losses as they begin to narrow, evident in its newly published financial report for the period ended April 2, 2022.

In a filing with the UK’s Companies House, the firm’s Harvey Nichols and Company Limited subsidiary, responsible for its London flagship, reported a turnover of 57.8 million pounds for the period, compared to its previous 27.3 million pounds.

Losses could be seen, but were substantially lower than the previous year, dropping from 17.7 million pounds to 3.75 million pounds. Meanwhile, loss after tax was reported to have fallen from 17.4 million pounds to 4.66 million pounds.

Directors of the group stated that it was able to manage its business risks despite ongoing economic uncertainty, yet in light of ongoing assessments, the group could be required to seek additional funds through shareholders to meet liabilities.

Despite this, directors stated that the company’s ability to continue is dependent on its parent company Broad Gain Limited to provide possible funding, which it has indicated to do, therefore sufficiently supporting the retailer.

However, losses were also present at Broad Gain, which reported a net loss of 31.79 million pounds, down from its previous 38.69 million pounds.

The firm’s revenue did see a jump however, increasing from 121.31 million pounds to 191.67 million pounds.

Its gross margin also rose from 37.3 percent to 47.1 percent, yet its EBITDA was still experiencing losses of 3.15 million pounds – notably lower than its 28.53 million pound hit last year.