Harrods reports 16.9 percent jump in annual profit

As per the accounts filed by Harrods, owned by Qatar Holding, the company’s profit increased 16.9 percent to 129.7 million pounds (161 million dollars) for the fiscal year 2016, against 110.9 million pounds (138 million dollars) reported last year, says a CityAM report. The company said, its turnover for the period ending January 30, 2016 increased by 2.6 percent to 788.9 million pounds (983 million dollars) compared to 769 million pounds (959 million dollars) in the year before. The company’s operating profit grew 43.2 percent to 178.1 million pounds (222 million dollars).

According to Nivindya Sharma, Senior Analyst at Verdict Retail, “A healthy set of results for luxury department store Harrods. The retailer acknowledged that trading conditions last year had been tough, but its Knightsbridge store’s destination status, the continuing success of its travel format, excellent mix of luxury brands and consistent focus on providing a theatrical instore shopping experience assisted the iconic department store operator to weather the difficult trading environment in 2015.”

Knightsbridge store revamp boosts sales

The company invested in revamping its store in Knightsbridge during the year along with its airport boutiques and plans to make the similar level of investments this year. The Knightsbridge store was acquired by Qatar Holding in 2010 for an estimated 1.5 billion pounds (1.8 billion dollars). The company has since invested 400 million pounds (489 million dollars) in upgrading its Knightsbridge store and adding new boutiques and boosting 4G connectivity at its flagship location. Harrods also has stores at London Heathrow and Gatwick airports and offers services at Luton and Stansted.

“While Harrods’ position among its department store counterparts remains unrivalled in terms of an aspirational brand image and heritage status, helping to draw in hordes of international tourists; it has been gradually branching out and seeking to modernize its proposition since it came under new leadership in 2010. The introduction of contemporary brands such as sportswear brand Lululemon, an overhaul of online operations, and installation of 4G instore help enrich the shopper experience and make the brand accessible to a wider shopper base,” adds Sharma.

Last year, despite rise in operating profit, Qatar Holding had received a dividend of 103 million pounds (126 million dollars), down from 150 million pounds (183 million dollars), paid to them a year before that. The company had attributed the considerable decline in payout to the year marked by tough trading at its London department store.

Harrods founded by Charles Henry Harrod, first opened doors in 1849 as a small shop primarily selling tea.

Picture:Facebook/Harrods,Dolce & Gabbana