Profits dip at Harvey Nicks’ regional stores

UPMARKET department store operator Harvey Nichols has reported a dip in profits at its Manchester. Leeds and Edinburgh shops.

Annual accounts for Harvey Nihcols Regional Stores Ltd , which covers the three sites, shows a slight pick up in sales in the year to April 2, from £50.9m to £51,4m.

Directors said the results – ebitda was down 4.8% to £3.7m as gross margins dipped 0.6% to 50.5% – represented a “satisfactory trading performance” achieved against a continuing backdrop of a weak economy and a slowdown in consumer spending.”

The company, a subsidiary of Dickson Investment Holding Corporation which is registered in the British Virgin Islands, paid a dividend of £1.5m to its parent.

Looking ahead the company said its focus would continue to be on upgrading its Leeds store – it began a programme of improvements there this year.

Finance director Manju Malhotra said: “The business environment continues to be volatile but the directors remain confident that the board’s strategy is able to respond to the challenging economic condition and that the company will maintain its current level of performance.”

He said trading in the first 20 weeks of the current financial year is in line with expectations.