DOHA/LONDON: Harrods, the London-based famous upmarket department store, has paid a £118m (about QR686.6m) dividend to its owners, Qatar Holding, after witnessing a sharp rise in sales and profits during a record year.
New accounts filed at Companies House show that Harrods grew turnover by 10 percent to £843m (about QR4.9bn) in the year to February 1, 2014, with pre-tax profits up 24pc to £115m (about QR669.2m), according to The Telegraph.
The growth in sales and profits led to Harrods paying out a dividend of £117.6m, almost double the £68.6m paid out last year.
The famous Knightsbridge shop is owned by Qatar Holding, the foreign investment arm of Qatar Investment Authority (QIA). The sovereign wealth fund acquired the luxury department store for £1.5bn in 2010 from Mohamed Al Fayed. Qatar Holding has invested millions into revamping Harrods.
The increase in sales for Harrods suggests that spending by wealthy international tourists remains robust, despite concerns about the luxury market.
The results for Harrods Group (Holding) Limited, the UK parent company, show that Harrods invested £59.9m during the year, not just on its flagship store but also in concessions in airports.
The company said: “This year the focus continued on investing in luxury boutiques primarily in our Knightsbridge store but also at the airports. This level of capital expenditure is expected to continue in 2014.” The Peninsula
