Harrods swings back to profit after Al Fayed abuse compensation
LONDON: Historic London department store Harrods has rebounded to a profit after compensation payments linked to alleged abuse by former owner Mohamed Al Fayed had driven it to loss last year, reported PA Media/dpa.
London's iconic department store, Harrods, has returned to profit following a period of losses stemming from compensation payments related to alleged abuse by former owner Mohamed Al Fayed, according to PA Media/dpa. The store reported an £84.9 million (US$114.6 million) pre-tax profit for the year ending January 31, a stark contrast to a £34.3 million (US$46.3 million) loss in the previous year.
The previous year's losses were attributed to challenging trading conditions and £62.5 million (US$84.4 million) in compensation to victims of Al Fayed. Harrods has paid compensation to over 100 victims from Al Fayed's 25-year ownership, with more than 260 people engaging in its redress scheme. Despite enduring two cyber attacks in the past year, Harrods reported that turnover increased by 1.2 percent to £1.1 billion (US$1.48 billion).
Finance chief Geoff Weaver stated that the figures represented further stabilization and modest growth for the business amid headwinds in the global luxury sector. The company remains buoyed by strong spending from international tourists and loyal customers, and Weaver expressed cautious optimism, crediting Harrods' iconic brand, long-term vision, and commitment to quality as key factors in navigating market shifts and driving sustainable growth.
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