Harrods tops £2bn in sales for second year but warns of falling international spend

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Harrods has topped £2 billion in sales for the second year running as it vows to ramp up investment into its boutiques.

In the year to February 3 2018 the luxury department store revealed a total revenue rise of 6.8 per cent to just over £2.1 billion, while its profits after tax jumped nine per cent to £176.7 million, up from £162.5 million a year prior.

It attributed the growth to a strong performance in its jewellery department, which has enjoyed significant investment over the past year.

Despite the promising figures, which highlight Harrods as one of the only UK department stores not to be in financial turmoil, it warned that a number of factors posed a major risk to its margins.

These included a decline in sales from international customers, thought to account for roughly 11 per cent of Harrods total sales, due to currency fluctuations and events “impacting the level of international travel to the UK”.

During the period Harrods increased its capital expenditure programme by 12 per cent to £55 million, launching new jewellery, fine watch and wellness departments alongside the restoration of its iconic food halls.

This expenditure is expected to continue to increase up until 2021.

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