Key facts
- Harrods reported a pre-tax loss of £36.5 million for the year ending February 1, 2025.
- A provision of over £60 million was set aside for compensation related to historic abuse allegations linked to former owner Mohamed Al Fayed.
- Turnover rose 0.6% to £1 billion.
- Operating profit fell to £177.7 million from £213.9 million.
- The Harrods Redress Scheme was launched in March 2025 to address historic issues.
- Compensation payments began in April 2025.
Harrods has reported a pre-tax loss of £36.5 million for the fiscal year ending February 1, 2025. This financial outcome was significantly impacted by a provision of over £60 million allocated for compensation and associated costs related to historic abuse allegations against its former chairman and owner, Mohamed Al Fayed.
Despite the loss, the company's turnover saw a modest increase of 0.6% to £1 billion, a figure that reflects continued challenges within the broader luxury market. Operating profit for the period declined to £177.7 million, down from £213.9 million in the prior year, with the company citing ongoing investments in employee salaries and increased distribution costs as contributing factors.
To address the historical issues, Harrods launched the Harrods Redress Scheme on March 31, 2025. The scheme has since seen over 100 survivors enter the process, with compensation awards and interim payments commencing in late April 2025. The redress scheme is scheduled to remain open until March 31, 2026.
Michael Ward, Managing Director of Harrods, described 2024 as a year of stable trade, acknowledging the challenging conditions in the luxury sector. He emphasized the resilience of the company's strategy, focusing on customer offerings and continued investment in its Knightsbridge store, including redevelopment of womenswear spaces and renovation of The Georgian restaurant. Ward expressed confidence in the business's strength and the luxury sector's resilience, anticipating progress toward long-term growth objectives.