An iconic London flagship is at the heart of the Harrods portfolio. (Photo by Oli Scarff/Getty Images)
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Harrods Group (Holdings) has reported a year of modest growth despite a turbulent global luxury market and problems with data breaches, with annual turnover rising 0.6% to $1.37 billion, according to its latest financial results.
The luxury U.K. department store group includes the iconic Knightsbridge department store, an online business, airport concessions at London’s Heathrow and Gatwick, H beauty locations, operations in China, Harrods Estates, and aviation services from Luton and Stansted.
Harrods recorded a gross transaction value of $2.79 billion, a 2.4% decline from the previous year.
Operating profits before exceptional items and pension losses dropped 17% to $226 million, reflecting higher staff and distribution costs. After accounting for exceptional charges, the company posted a pre-tax loss of $43.6 million and a post-tax loss of $46.4 million.
Harrods Managing Director Michael Ward described the year as one of “stable trade,” noting that Harrods continued to invest heavily in its flagship Knightsbridge store in London, which has been undergoing years of departmental refurbishments.
Major projects included a revamp of its womenswear departments and the renovation of The Georgian restaurant.
Ward highlighted significant one-off expenses, including costs tied to a large-scale digital transformation and the introduction of the Harrods Redress Scheme, a compensation program for survivors of historical abuse committed by its former owner and chairman Mohamed Fayed.
Claims against the controversial former owner have weighed heavily on Harrods’ reputation since his death, while data breaches have also impacted its operations.
The scheme, launched on March 31, 2025, has already received more than 100 applications, with compensation and interim payments issued since April. It will remain open until March 31 next year.
Harrods Looks To Long Term
“Despite a difficult backdrop for luxury retail, our performance underscores the strength and resilience of the Harrods brand,” Ward said. “We remain focused on delivering exceptional customer experiences and confident in the long-term prospects of the luxury market.”
The financial update came after a difficult year for the famous retailer, which it will hope to be putting behind it.
Mohamed al-Fayed, the deceased former owner of Harrods, has left the retailer to unpick a major scandal.
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Late last month, Harrods admitted that nearly half a million shoppers were affected by a data breach earlier in September, after one of its third-party service providers was compromised. In a statement, the company said it had “received communications from the threat actor and will not be engaging with them,” but declined to share further details about the hackers’ messages.
Harrods insisted that none of its own internal systems were breached. The exposed information was limited to basic personal identifiers — such as names and contact details — and did not include payment information or account passwords, according to a company spokesperson.
Harrods Among Retailers Hit
Cyber attacks and data breaches have become a major issue for retailers and brands, from Japan to London, plus the U.S.
“The third party has confirmed this is an isolated incident which has been contained, and we are working closely with them to ensure all appropriate actions are being taken,” Harrods said in a statement. “No Harrods system has been compromised, and the data was taken from a third-party provider.”
Harrods also stressed that this breach is unrelated to previous unauthorized access attempts earlier this year. The retailer was targeted in a separate cyberattack in May, following similar incidents at other major U.K. retailers, including Marks & Spencer, Greggs and Co-Op.
Source: https://www.forbes.com/sites/markfaithfull/2025/10/06/harrods-bucks-luxury-woes-and-points-to-stability-after-tough-year/
