“Significant investments” throughout the 2015/16 financial year interrupted trading at Harvey Nichols and hit the luxury retailer’s bottom line.
Harvey Nichols accessories
The department store group made a £3m profit during the year, compared with £5.9m in 2014/15. Its gross margin slipped to 55% from 56% the year before.
Revenues increased 1% to £194m, according to accounts filed at Companies House this week.
Throughout the year, investments were made into its flagship store in Knightsbridge, which is undergoing a complete transformation. The first phase of the refurbishment was unveiled in April with the opening of two new menswear floors.
A 10-month refurbishment project on the ground floor resulted in the closing of entrances and whole areas of the floor. It is now home to a new beauty destination, as well as new international accessories and jewellery departments, which opened in November.
Harvey Nichols has also invested in its website, which now delivers to more than 200 countries and transacts in 74 currencies.
The business said the UK remains a “very important market strategically and commercially”, but it will focus on opportunities overseas in 2017. It will open a store in Doha, Qatar, next year, bringing its total international store count to eight.
Stacey Cartwright, CEO of Harvey Nichols Group, said: “I am pleased with the group’s financial performance this year and happy with the progress that we are making towards the vision that the board and I set out to achieve when I joined in 2014.
“We have made a number of necessary investments this year – in our stores, our digital channels and our people – in order to continue the radical transformation of the brand that will enable us to adapt to changing customer preferences and achieve future growth at the bottom line.”
The Harvey Nichols Group includes all stores in the UK (Knightsbridge, Birmingham, Manchester, Edinburgh, Leeds, Beauty Bazaar in Liverpool and Bristol), as well as the Oxo bar and restaurant on London’s south bank; seven international stores (Dublin in the Republic of Ireland and internationally Riyadh, Hong Kong, Dubai, Istanbul, Ankara and Kuwait); and the Harvey Nichols head office in Chiswick, London.