Harrods falls to FY loss as it sets aside £60m for abuse victims

Harrods has fallen to a pre-tax loss of £34.3m in its latest full-year results, as it set aside more than £60m as part of plans to compensate abuse victims of former chairman and owner Mohamed Al Fayed.

Michael Ward, managing director of Harrods, said its pre-tax loss was in part due to this provision for the redress and associated costs for survivors of historic abuse perpetrated by Al Fayed. 

According to the BBC, the group has set aside a provision of £57m for eligible victims, with £5.3m reserved for legal and administrative costs. 

The Harrods Redress Scheme was launched on 31 March 2025, and since then more than 100 survivors have entered the process, according to Ward. 

Compensation awards and interim payments began being issued at the end of April, and the scheme will remain open until 31 March 2026. 

It comes as more than 100 women have accused Al Fayed, who owned the store between 1985 to 2010, of rape and sexual assault.

Elsewhere, Harrods welcomed a year of “stable trade” as turnover rose by 0.6% to £1.081bn, outperforming in a “challenging” luxury sector. However, operating profit, before exceptional items, fell by 17.7% to £177.7m amid ongoing investment in employee salaries and increased distribution costs.

Ward said: “Our results demonstrate the resilience of Harrods’ business strategy of commitment to exceptional customer offerings and ongoing investment in this period across our Knightsbridge store including the continued redevelopment of our womenswear spaces and renovation of The Georgian restaurant. 

“The current domestic and global economic environment means that current trading conditions in the luxury sector remain challenging. However, we remain confident in the strength of the business, and the resilience of the luxury sector, and that we will continue to drive progress towards longer-term growth and performance objectives.”