Harrods Group (Holdings) Limited has reported a year of steady performance in its latest financial results, with turnover rising by 0.6% to £1.08 billion despite a challenging trading environment for the global luxury sector.

The group – which includes the famous Knightsbridge store and online business, concessions at Heathrow and Gatwick airports, H beauty stores, overseas operations in China, Harrods Estates and aviation services from Luton and Stansted airports – recorded a gross transaction value (excluding VAT) of £2.20 billion, down 2.4% on the previous year.

Operating profit before exceptional items and pension losses fell 17% to £177.7 million, reflecting higher staff costs and increased distribution expenses.

Exceptional costs resulted in a pre-tax loss of £34.3 million and a post-tax loss of £36.5 million.

Michael Ward, managing director of Harrods, described the year as one of “stable trade,” highlighting the company’s continued investment in its flagship Knightsbridge store, including the redevelopment of its womenswear departments and the renovation of The Georgian restaurant.

Ward acknowledged the significant impact of exceptional costs, which included a major digital transformation project and the launch of the Harrods Redress Scheme, a compensation programme for survivors of historic abuse perpetrated by former chairman and owner Mohamed Fayed.

The scheme, established on 31 March 2025, has already seen over 100 survivors enter the process, with compensation and interim payments being issued since April. The scheme will remain open until 31 March 2026.

“Despite a tough environment for luxury retail, our performance continues to demonstrate the resilience of the Harrods brand and our commitment to exceptional customer experiences,” Ward said.

“We remain confident in the strength of our business and the long-term prospects for the luxury sector.”

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