Fashion
Harrods sales flat despite challenging condition, but profits hit by Fayed compensation
Published
October 5, 2025
Last week 2024 Selfridges’ results showed how the luxury slowdown and lack of VAT-free shopping for tourists remain a problem for high-end retailers. And on Sunday Harrods did the same, releasing its numbers ahead of its filing at Companies House.
Harrods Group (Holding) Limited saw gross transaction value (GTV) excluding VAT falling 2.4% to £2.198 billion for the year to February 2025, although turnover edged up 0.6% to just under £1.082 billion, which was below the Uk inflation figure. A year earlier, those numbers had risen 6.6% and 8.2%, respectively.
Operating profit (before exceptional items/pension loss on settlement) fell by 17% to £177.7 million and profit before tax was was actually a loss of £34.3 million, having been a profit of £111.5 million a year ago. Profit after tax was also a loss this time of £36.5 million. In the prior year, net profit was a positive figure of £76.7 million, although that was a fall from £135.8 million.
MD Michael Ward explained that the fall in operating profit reflected “reflecting investment in employee salaries and increased distribution costs”, while “continuing to demonstrate the strength of the fundamentals of our business”.
But why did it swing to such a large pre- and post-tax loss this time? Ward said the accounts include “significant exceptional costs… which have impacted profit. These costs include the strategic digital transformation of our enterprise resource planning system and a provision for redress and associated costs for survivors of historic abuse perpetrated by Harrods former Chairman and owner Mohamed Fayed. Compensation awards and interim payments began being issued to eligible survivors at the end of April 2025 and the scheme will remain open until 31 March 2026”.

The Mohamed Fayed scandal was bound to have a big impact but while it understandably continues to generate negative headlines, the turnover figure shows that shoppers clearly see a difference between the business as it is now and as it was then and it remains one of the world’s most prominent luxury retailers.
Ward focused on the positives saying that “2024 was a year of stable trade for Harrods [regarding] turnover… despite trading conditions in the luxury sector remaining challenging and once again showing outperformance by Harrods of the luxury industry as a whole”. That outperformance came in comparison to the latest Bain & Company and Fondazione Altagamma estimate that overall luxury spending dipped to €1.48 trillion globally in 2024.
Ward said that the “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”.
But the market remains challenging, Ward added, although he also said that “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”.
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Fashion
US brand Calvin Klein unveils Spring 2026 denim with Jung Kook
Directed and shot by Mert Alas, the new chapter sharpens the focus on denim as the ultimate expression of personal style through icon Jung Kook’s distinctive and influential point of view as he lives in the moment.
Calvin Klein, owned by PVH Corp., has unveiled its Spring 2026 denim campaign fronted by BTS icon Jung Kook.
Directed and photographed by Mert Alas, the cinematic film fuses music, movement and city energy, highlighting 90s Straight, Baggy and reworked Trucker silhouettes.
A special appearance by Rosie Perez amplifies the brand’s signature visual storytelling.
The campaign unfolds across a series of immersive worlds, unified and guided by Jung Kook’s style, attitude and way of living. The high-impact film fuses fashion and entertainment, moving to an instantly recognizable soundtrack and brought to life through the artist’s signature choreography and commanding presence. The interplay of music and movement – complete with a cameo from New York City legend Rosie Perez – captures the impact synonymous with Calvin Klein’s iconic visual storytelling.
Calvin Klein jeans are at the center of the wardrobe with hero silhouettes leading the narrative: the effortless attitude of the 90s Straight; the relaxed and nostalgic proportions of the Baggy; and new interpretations of the iconic Trucker jacket — all reimagined with elevated washes and designed for versatility. Casual logo tees and oversized bombers complete the looks, reinforcing denim as both uniform and statement.
“I love Calvin Klein jeans because they’re designed to be lived in,” said Jung Kook. “The looks I wore for this campaign nod to ‘90s style while feeling completely modern. It was exciting to bring together my love of music, dance and fashion against the energy of the city.”
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Fashion
China targets 4.5 to 5% GDP growth for 2026
Premier Li Qiang, who delivered the report at the opening of the fourth session of the 14th National People’s Congress in Beijing, said the growth target is “well aligned with the country’s long-range objectives through the year 2035 and is broadly in line with the long-term growth potential of China’s economy, with favorable conditions in place for achieving this target.”
China has set a GDP growth target of 4.5–5 per cent for 2026, alongside goals to stabilise employment, manage inflation, maintain grain output and cut emissions.
The plan also preserves flexibility for structural reforms under the 15th Five-Year Plan, aiming to balance steady economic expansion with long-term, high-quality and sustainable development.
Main development targets for 2026 also include a surveyed urban unemployment rate of around 5.5 per cent, creation of over 12 million new urban jobs, a rise in the consumer price index of around 2 per cent, personal income growth in step with economic growth, a basic equilibrium in the balance of payments, grain output of around 700 million tonnes, and a drop of around 3.8 per cent in carbon dioxide emissions per unit of GDP.
Qiang said the targets took into account the need to leave room for structural adjustments, risk prevention and reform in the opening year of the 15th Five-Year Plan (2026–30) period, to lay a solid foundation for improved performance in the coming years. Government at local level should, taking into account their own conditions, make solid efforts to deliver positive outcomes, he added.
Analysts said the 2026 target reflects a pragmatic approach in recognising structural and cyclical challenges facing the world’s second-largest economy, while pursuing reasonable growth in line with high-quality development.
Fibre2Fashion News Desk (JP)
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