• Full-year pre-tax profits up 4.2% to £146.3m
  • Sales slip 3.1% to £769m
  • Operating profits rise 2.9% to £126.5m
  • Dividends paid of £103m, down from £150m the prior year

Luxury department store Harrods has reported a 4.2% rise in full-year pre-tax profits despite “tough trading conditions” in which sales fell.

The retailer said sales slipped 3.1% to £769m in the 12 months to the end of January 2015. Pre-tax profits rose by 4.2% to £146.3m.

Harrods said “despite tough trading conditions” operating profits rose 2.9% to £126.5m. Gross transaction value increased 1.2% to £1.39bn.

Harrods

Harrods

Harrods has reported a 4.2% rise in full-year pre-tax profits despite “tough trading conditions” in which sales fell

The department store group, which also has Harrods concessions at Heathrow and Gatwick airports, has been investing in luxury boutiques at its sites, resulting in a capital expenditure of £48.6m this year. However this was down on capital expenditure of £58.9m the prior year.

The London store attracts wealthy foreign visitors and earlier this year Harrods’ managing director Michael Ward argued the case for airport expansion.

Harrods’ owners Qatar Holding received a dividend of £103m, down from £150m the prior year.

Qatar Holding, Qatar’s sovereign wealth fund, acquired the business from Mohamed Al Fayed for an estimated £1.5bn in 2010.