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Harrods returns to profit as exceptional costs drop £76m
Harrods swung to a £84.9m profit after exceptional costs for redress and restructuring fell by £76m. Revenue edged up 1.2% as the luxury retailer consolidates on its Knightsbridge flagship.
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Harrods swung to a profit in its latest financial year as exceptional costs tied to the employee welfare redress scheme and loan restructuring fell sharply. The luxury department store reported revenue up 1.2% for the year to January 2026, with profit before tax climbing to £84.9m, GlobalData analyst Elliot Rickerby said in a note.
The jump in profit was largely driven by a £56.2m drop in costs for the employee welfare redress scheme, which compensates victims of abuse by the former owner, and a £19.7m reduction in loan restructuring expenses, Rickerby said. Without those one-off items, the profit improvement would have been far smaller.