Harrods bounces back from pandemic to record tenfold jump in profits

Turnover rose by more than 50% compared to the previous year, which had been hit by Covid-19 restrictions.

Profits at Harrods benefitted from the comparison to the previous year, which was impacted by Covid-19 (Matt Alexander/PA) (PA Archive)

The business which owns Harrods has reported that pre-tax profit soared from £17.4 million in the year to the end of January 2022 to £171.6 million the following year.

It came as turnover spiked by about 52%, taking it to £994.1 million during the year, the business revealed in accounts filed to Companies House.

The rise was partly explained by the Covid-19 pandemic, which forced the Knightsbridge store to close for 10 weeks in the year to January 2022.

“The increase in turnover reflected the store opening for the full year versus the closure in the prior year, and a strong recovery in trade as the impact of the Covid-19 pandemic subsided and both local and overseas customers returned,” the business said in its accounts.

Harrods’ retail arm, which includes the giant Knightsbridge department store for which it is most famous, made up more than 91% of its turnover during the year.

The business also has an aviation arm which runs aircraft services and maintenance for private jets at Stansted and Luton airports.

That part of the business made £85.6 million during the year, more than twice the £39.7 million it made a year earlier.

Harrods is owned by the half-trillion dollar Qatar Investment Authority which also owns the Shard and is a co-owner of Canary Wharf.

Last year, the sovereign wealth fund said that it was reviewing its investments in London after Transport for London banned Qatar from advertising due to the country’s record on human rights.