Selfridges saw profits jump 30% to £84.1 million for the year to last January.
Selfridges' strong profit rise came on the back of a 10% uplift in sales to £655m over the period.
However sales at Selfridges are understood to have continued strongly up until mid-September when trading got tougher. The luxury sector is believed to be widely feeling the impact of the recession in the run up to Christmas.
According to The Sunday Times newspaper, Selfridges has been pleased with performance at its Wonder Room, which opened last year and sells luxury items including accessories.