Harvey Nichols Revenues Rebound by 58 Percent

Harvey Nichols Narrows Losses to £21.2 Million Amidst Sales Improvement

Retailer sees a 13% increase in revenue as it works to stabilize operations and enhance profitability post-pandemic

Harvey Nichols, operating under the name Broad Gain (UK) Limited, has filed its annual results for the year ending last April at Companies House, confirming figures initially released last month. The luxury retailer reported a reduced annual loss and an increase in sales, marking a year free from the direct impacts of Covid-19.

Despite the absence of pandemic-related closures, Harvey Nichols recorded a pre-tax loss of £21.2 million, an improvement from the previous year’s loss of £30.4 million. This loss occurred during a year of transition for the company, which saw the departure of its CEO and a subsequent delay in appointing a permanent successor, Julia Goddard from Alexander McQueen, who was only announced last week.

Julia Goddard

The company operates seven stores across the UK, one in the Republic of Ireland, a UK-based webstore, and several international locations. It reported that increased foot traffic led to a rise in sales, with revenue climbing 13% from £191.6 million to £216.6 million. However, the retailer faced challenges with rising costs and declining margins, primarily due to heightened levels of discounting which saw gross margins fall from 47.1% to 45.4%. Additionally, increased finance expenses and greater capital investment further impacted profitability.

Manju Malhotra, who had been with Harvey Nichols since 1998 and served as CEO from January 2021, resigned six months after the period covered by these results. The company has not provided an update on trading conditions following the end of the reported period, but the leadership change suggests ongoing efforts to stabilize and improve performance.

In recent strategic moves, Harvey Nichols announced job cuts last month and revealed last year a decision to close its Landmark store in Hong Kong while maintaining its presence at the Pacific Place location. These steps indicate ongoing adjustments as the retailer navigates a shifting retail landscape and works to return to pre-pandemic business levels.