Harvey Nichols: Losses near £100m at luxury department store chain as sales fall
Harvey Nichols has now lost almost £100m since it last made a pre-tax profit, it has been revealed, after being hit by the cost-of-living crisis and high inflation during its latest financial year.
Delayed accounts for the iconic retailer, which was founded in 1831, have revealed its pre-tax loss went from £21.2m to £35.3m in the year to 30 March 2024.
In its previous financial year, Harvey Nichols had increased its sales to more than £200m for the first time since the pandemic and reduced its pre-tax loss from more than £30m.
The accounts, which have just been filed with Companies House, also show its revenue fell from £216.6m to £204.8m in the year.
Harvey Nichols last made a pre-tax profit in the year to March 30, 2019, when it posted a result of £2.6m.
As well as its flagship store in Knightsbridge, London, Harvey Nichols also has locations in Birmingham, Bristol, Leeds, Liverpool, Manchester, Edinburgh and Dublin as well as Hong Kong, Saudi Arabia, the UAE, Kuwait and Qatar.
Harvey Nichols is owned by Hong Kong luxury goods company, Dickson Concepts.
Harvey Nichols hit by tax-free shopping loss
From its stores, online and head office, Harvey Nichols generated a revenue of £193.9m in the year, down from £204.6m.
Sales at its stand-alone restaurants also declined from £11.9m to £10.8m.
On a geographical basis, its UK revenue fell from £194.1m to £185.4m while its sales went from £22.4m to £19.4m in the rest of the world.
A statement signed off by the board said: “During the period the group undertook a restructuring to streamline costs, which resulted in one-off restructuring costs.
“Nevertheless, trade was impacted by weak consumer confidence as a result of the cost-of-living crisis and the highest interest rate in 15 years.
“Meanwhile, the loss of tax-free shopping in the UK continued to impact sales from tourists.”