- Operating profits fell 30% to £13.9m
- Group revenue was flat at £193m
- Gross margin remained flat at 56%
Harvey Nichols has revealed a 30% drop in full-year operating profits and flat sales as it invests in its store and technology offer.
The department store group, which has seven UK shops, said operating profits before exceptionals in the 52 weeks to March 28 were £13.9m.
Group sales were flat at £193m. Gross margin also stayed flat at 56%.
Harvey Nichols boss Stacey Cartwright said: “I am pleased to report that Harvey Nichols has maintained its top-line financial performance against a backdrop of an increasingly challenging external environment.”
The retailer pointed to investment in its store and technology proposition. It introduced its loyalty card app, overhauled its Birmingham flagship store and relaunched its website last year.
It is currently refurbishing its Knightsbridge flagship store, which is due to be completed by next Christmas.
Harvey Nichols said it also plans to increase the countries it ships to in spring to places “where there is already strong awareness of the brand”, but did not detail which countries.
Outside the UK, the retailer has stores in Dublin, Hong Kong, Dubai, Istanbul, Ankara, Riyadh and Kuwait.
Looking ahead, the group warned that it expects the “trading climate for luxury retail will continue to be uncertain”. It added: “Retailers need to work even harder to stand out and deliver a strong, differentiated and compelling customer proposition.”