Harrods returns to profit after 2024 loss triggered by Al Fayed abuse provision 

Britain's most famous department store has returned to the black a year after the cost of compensating hundreds of sexual abuse victims of its former owner pushed it into an annual loss.

Sky News can reveal that Harrods recorded a pre-tax profit of £84.9m in the year ended 31 January, according to accounts to be made public on Tuesday.

The profit figure compares to a pre-tax loss of just over £34m in 2024, with tougher trading conditions exacerbated by a £62.5m compensation charge relating to Mohamed Al Fayed's decades-long catalogue of abuse.

Harrods has so far compensated roughly 100 women who have come forward to make redress claims, with hundreds more still to reach settlements with the Qatari-owned luxury goods brand.

The company's Harrods Redress Scheme was launched on 31 March 2025 and closed to new applications on 31 March 2026, with a £62.5m compensation provision having been included in the 2024 accounts.

As the provision was included in our FY24 accounts, this is not reflected again in our FY25 accounts. The figure included in this year's accounts is incurred costs in addition to the provision.

The latest accounts, which have been filed at Companies House, are not thought to show any provision for the two cyberattacks which hit Harrods in 2025, a year in which major retailers including the Co-op and Marks & Spencer were targeted in similar incidents.

Geoff Weaver, Harrods' chief financial officer, described the latest results for Harrods Group (Holding) Limited as showing "further stabilisation and modest growth".

Turnover reached close to £1.1bn, a 1.2% increase on 2024.

"Despite ongoing headwinds across the global luxury sector, Harrods once again outperformed the broader market," Mr Weaver said, referring to an annual study published by firms including the consultancy Bain & Company.

"Our results provide a clean and clear picture, reflecting the strength of our core strategy: investing in exceptional customer experiences, strong brand relationships and continuously elevating our Knightsbridge store," he added.

"While global macroeconomic and geopolitical uncertainty continues to shape the operating environment, Harrods remains cautiously optimistic.

"Driven by our iconic brand, long-term vision, and unwavering commitment to quality, we are uniquely positioned to navigate market shifts and drive sustainable long-term growth."

Operating profit for the year of £172.3m - a decline on the £177.7m recorded in the previous 12 months - reflected investment in employee salaries and higher distribution costs, the company indicated.

Harrods said an average 3.2% pay rise for staff had cost it £8.5m, while increased employer national insurance contributions totalled a further £5.7m.

Harrods' latest results come as rival Harvey Nichols is on the brink of a pre-pack administration which will see it sold to the billionaire retailer Mike Ashley's Frasers Group.

An announcement confirming Sky News' reports on the takeover of the chain is expected by the middle of this week.

(c) Sky News 2026: Harrods returns to profit after 2024 loss triggered by Al Fayed abuse provision