LONDON — Harrods owner the Qatar Investment Authority is rewarding themselves with a 180 million pound dividend.
Accounts from Harrods Group (Holding) Ltd. show that the retailer’s operating profit dropped by 17.2 percent in the 52-week period ending February 2024.
Operating profit totaled 167.7 million pounds, sharply down from last year’s 202.7 million pounds.
Harrods said the decline in operating profit was due to the company’s pension buy-in with Scottish Widows Ltd. as they bought an insurance policy from the life insurance and pensions company.
The decline also resulted in managing director Michael Ward’s salary falling to 2.1 million pounds versus the 2.3 million pounds the year before.
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However, the company recorded an 8 percent increase in turnover to 1075.1 million pounds, an 81.1 million pound boost from the previous year.
The business applauded itself for its turnover, saying that “2023 was a year of good financial performance for Harrods, reflected in our sustained and robust growth that reaffirms our leading position in luxury retail,” a Harrods spokesperson said. “Our results reflect our continued commitment to exceptional customer offerings and ongoing investment across the Knightsbridge store, our online platform and across the U.K. and internationally.”
Harrods also praised its swimwear department, eveningwear spaces and new dining hall for the retailer’s sales growth.
“These results reflect a period of significant growth for the luxury industry in 2023. The current domestic and global economic environment has meant that current trading conditions in the luxury sector are more challenging. We remain confident in the fundamentals of the business, and the resilience of the luxury sector, and that the business sustains its longer-term growth and performance objectives,” the spokesperson added.
