Harrods posts annual profit rise of 9 percent to 216 million pounds

High-street retailer Harrods posted a pre-tax profit of 215.9 million pounds (281 million dollars), up 9 percent and total sales increased of 6.8 percent to over 2.1 billion pounds (2.7 billion dollars) for the year to February 3, 2018, reports The Times. The company said in a statement that despite a sharp rise in its capital expenditure and wage costs, operating profit reached 218.4 million pounds, an increase of 15.8 percent for the year under review.

Driven by robust sales and profit growth, the company’s Qatari owner Qatar Holding received a 15 million pounds (19.5 million dollars) increase in dividend to 125 million pounds (163 million dollars). The report quoted Michael Ward, Managing Director of Harrods, saying that the company’s strong results and bumper dividend showed that Harrods boasted a robust business model capable of weathering cost increases and headwinds, including a no-deal Brexit.

Harrods is known for its domed building in Knightsbridge, London. The report added that after investing 55 million pounds in renovating food halls within the store and introducing a fine watches and jewellery section as well as wellness centre, the company aims to invest another 200 million pounds on refurbishments that would include creating the world’s largest menswear and sports department, over the next three years. Harrods also plans to double the size of its beauty hall and invest in its wellness, beauty and homewares departments.

Picture:Harrods via FashionUnited