Harrods returns to profit but falls below pre-pandemic sales in 2021

Harrods is half-recovering. British luxury department store company ended the 2022 financial year (which ended in January of the same year) leaving behind lossesbut with sales 33% below pre-pandemic levels, as advanced The Sunday Times.

In particular, the company recorded an operating profit (EBIT) of 51 million pounds (59.4 million euros) in 2021. compared to a negative ebit of £68.3m (€79.6m) recorded in the year of the pandemic.

The British company’s sales in 2022 increased by 35.5% to 581.9 million pounds (€677.7 million), 33% below the group’s £870.8 million turnover in the last year before the outbreak of the pandemic.

Harrods plans to recover pre-Covid-19 figures in the current financial year, which ends in January 2023., driven by the good performance of Rolex products and Dior accessories. With everything, the company will not be able to turn a profit before the pandemic this fiscal year due to rising labor and energy costs.

Company growth this year is due to the recovery of demand from local customers and the good business of restaurants and hairdressing businesses, as explained by Michael Ward, CEO of Harrods. In addition, the return of tourism from the Middle East compensated for the lack of Chinese clients, one of the most important for the luxury department store company.

The last two years have been difficult for Harrods, with restrictions on international trade and travel, its biggest source of business. Last May, the company appointed a new CFO, Tim Parker, to lead the turnaround.

Due to the impact of Covid-19 on your business and supply chain, Harrods announced last February that it would cease operations in Thailand, Taiwan and Singapore. with the closure of all its outlets in the countries after their stocks were exhausted.

Leave a Reply

Your email address will not be published. Required fields are marked *