Harrods’ Qatari owners rake in £125m despite profit drop

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Harrods Qatar Holdings trading update
Harrods said it underwent a significant programme of capital expenditure in the period – £64.1 million, compared with £55 million in 2017/18
// Harrods profits drop 3% to £171.6m in the year to February 9
// Operating profit dropped to £202m during the period
// Turnover increased to £868.6m in the 52 weeks to February 2

Harrods has reported a three per cent dip in profits to £171.6 million for the year to February 9.

Operating profit dropped to £202 million during the period, compared with £218.4 million in 2017/18.

Turnover increased to £868.6 million in the 52-week period, up from £862.5 million the year prior.


READ MORE: Harrods boss warns on Corbyn as profits dip


Meanwhile, gross profit grew to £512.9 million from £513.9 million in 2018.

Harrods said it underwent a significant programme of capital expenditure in the period – £64.1 million, compared with £55 million in 2017/18.

It added that capital expenditure is expected to increase in 2019/20.

Last year, the luxury department store’s Qatari owners paid themselves a £125 million dividend despite the dip in profits.

Harrods, which opened its world-famous Knightsbridge store in 1849, handed the payment to Qatar Holding, the investment arm of the country’s sovereign wealth fund.

Qatar Holding bought Harrods in 2010 for £1.5 billion from Egyptian millionaire businessman Mohamed Al-Fayed.

The group injected £64 million of investment into Harrods during the year, which is a 17 per cent rise compared to the previous 12 months.

Harrods used the cash to revamp its 90,000sq ft beauty hall, among other things.

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