Harrods is back into profit after paying £62.5m to Al Fayed's victims

See more Daily Mail on Google - save us as a Preferred SourceBy PATRICK HARRINGTON, UK NEWS REPORTER Published: 01:31 BST, 12 August 2026 | Updated: 01:35 BST, 12 August 2026

Harrods has bounced back into profit a year after payments to victims of its former owner Mohamed Al-Fayed dragged it into loss.The £62.5 million Harrods paid in compensation to more than 100 victims of the sexual predator meant Harrods lost £34.3 million in the year to January 31, 2025.But across the ensuing 12 months, to the end of January this year, the historic London department store reported a healthy pre-tax profit of £84.9 million.Harrods had also grappled with tough trading conditions in the year to January 2025, but it was the compensation payments that drove its accounts into the red.Al-Fayed, who died in 2023, has been accused by hundreds of women of raping or sexually abusing them during his 25 years as the owner of Harrods.Many gave accounts to the BBC of being exploited as young employees at the store, with Al-Fayed allegedly using his power to intimidate and take advantage of them.Some described being ushered to his luxury apartment overlooking Hyde Park in London and raped.Soon after the allegations went public, lawyer Gloria Allred, advocating for some of the women, said the 'ugly truth' was that, under Al-Fayed's chairmanship, Harrods was 'a toxic, unsafe and abusive environment'. Mohamed Al-Fayed owned Harrods for 25 years, during which time hundreds of women say he abused them Harrods has returned to profit the year after compensation payments to victims pushed it to a loss She added: 'The allegations against Mohamed Al Fayed include serial rape, attempted rape, sexual battery and sexual abuse of minors.'The allegations involve cover-ups, threats and a quarter century of sexual abuse by Mohamed Al Fayed after he purchased Harrods and became its chairman.'This month, the Home Office confirmed that at least five survivors of Al Fayed's abuse had been victims of human trafficking.As of March, 154 victims had come forward to the Metropolitan Police with allegations against Al-Fayed, while more than 260 people have engaged with Harrods' own redress scheme. The retailer said it has paid compensation to more than 100 victims. The latest accounts come after the company was hit by two cyber attacks last year, although the group said these inflicted 'limited' financial damage.Harrods reported that turnover increased by 1.2 per cent to £1.1 billion for the year.Finance chief Geoff Weaver said it represented 'further stabilisation and modest growth' for the business, amid headwinds on the global luxury sector.The group has been buoyed by strong spending from international tourists and wealthy regular shoppers.Mr Weaver added: 'While global macroeconomic and geopolitical uncertainty continues to shape the operating environment, Harrods remains cautiously optimistic.'Driven by our iconic brand, long-term vision, and unwavering commitment to quality, we are uniquely positioned to navigate market shifts and drive sustainable long-term growth.'Elsewhere in the sector, rival Harvey Nichols has warned in its latest accounts that it would need to 'cease trading' within a year if it fails to secure fresh investment.It comes as an auction process to buy Harvey Nichols nears its conclusion, with Frasers Group and Next understood to be vying to buy the brand.