Iconic department store Harrods has seen a surge in sales, taking a record 716.3 million pounds in the year to February.
The company stated that due to its royalities payment scheme to Harrods Corporate Management that its operating profit fell 13 percent to 108 million pounds. Excluding the cost, operating profit would have climbed 8 percent.
During the 53-week period, Harrods grew total profit after tax to 632 million pounds, up from 89.5 million pounds last year, with a major boost from the sale of trademarks for 541 million pounds.
The luxury department store business grew its capital expenditure, investing in boutiques in its Knightsbridge store as well as airport stores.
The company, which is due to open a 1,776 square foot concession in Heathrow airport’s Terminal 2 next summer, said it expected spend to remain the same for the current financial year.
In the directors’ report, Harrods identified three principal risks for the business: events affecting international travel; the state of the economy; and staff retention and recruitment.