Harvey Nichols Revenues Bounce Back Toward Pre-Pandemic Levels
Harvey Nichols, the renowned 192-year-old luxury retailer owned by Hong Kong retail tycoon Dickson Poon, experienced a remarkable rebound in revenues, jumping 58 percent to 191.7 million pounds in the 53 weeks leading up to April 2, 2022. The impressive surge in sales came as international visitors returned to London following the easing of COVID-19 pandemic restrictions.
This significant recovery marked a substantial improvement for the company, as it had recorded revenues of 222 million pounds in the 12 months ending March 30, 2020. The latest Companies House filing also revealed a positive shift in earnings before interest, taxes, depreciation, and amortization (EBITDA). The store’s EBITDA loss significantly decreased from 28.5 million pounds in the previous year to 3.15 million pounds in the same period. Moreover, the total comprehensive loss narrowed from 40.9 million pounds to 28.1 million pounds.
Gross margin witnessed a notable increase, surging almost 10 percent to 47.1 percent from 37.3 percent. The company attributed the rise in turnover and margin rate to “business reopening and ongoing discipline on costs.”
The reported results encompass all seven Harvey Nichols stores in the U.K. and the Republic of Ireland, including the iconic Knightsbridge flagship location. The consolidated figures also consider franchise income from the six international stores operating under license in Dubai, Riyadh, Kuwait, Doha, and Hong Kong.
Despite facing challenges due to pandemic-related restrictions, Harvey Nichols has remained financially stable. The company plans to continue investing in its online channel and brick-and-mortar stores to achieve long-term profitable growth.
A closer look at the performance of the Knightsbridge flagship revealed an impressive 111.6 percent increase in turnover to 57.8 million pounds from 27.3 million pounds in the same period. While the group’s overall recovery has been encouraging, the flagship’s performance is still below pre-pandemic levels, trailing the fiscal year 2019-2020 turnover of 81.27 million pounds.
In a bid to encourage further recovery, Manju Malhotra, Harvey Nichols’ CEO since January 2021, has joined other prominent business leaders in urging the British government to reintroduce tax-free shopping for international visitors. Malhotra emphasized the importance of regaining business momentum and preventing the U.K. from losing out on international shoppers to other European cities.
To address the issue, a parliamentary debate is scheduled for September 7 at Westminster Hall, involving the Treasury. The debate is the result of a campaign led by the Association of International Retail and New West End Company, responsible for overseeing numerous retail and hospitality establishments around Regent and Oxford Streets.
As stores and restaurants reopen, Harvey Nichols continues to navigate both opportunities and challenges. According to the Companies House filing from Harvey Nichols.com Ltd., the retailer’s online business, revenues for the fiscal year 2021-2022 were down by 19.3 percent compared to the prior period. The company is working to strike a balance and capitalize on its strong brand identity and customer base to achieve sustained growth in the evolving retail landscape.