Harvey Nichols sees profits more than halve after splashing the cash on refurbs

HIGH refurbishment costs – including the overhaul of its Mailbox store in Birmingham – have seen up-market retailer Harvey Nicols’ profits more than halve.

The department store chain ploughed cash into a “significant” investment programme intended to bolster it against a tough trading environment.

This included closing its Mailbox store which re-opened with some fanfare in a larger unit in the scheme in October.

Pre-tax profits for the 12 months to March 28 fell by 55pc to £6.3m although sales were largely unchanged from the year before at £193.2m, which chief executive Stacey Cartwright focused on.

“I am pleased to report that Harvey Nichols has maintained its top line financial performance for 2014/15 against a backdrop of an increasingly challenging external environment,” he said.

“We are well advanced now on our exciting journey to revitalise the brand with a significant investment programme in technology, our stores, our digital channel and in our people.”

Cartwright, formerly chief financial officer of Burberry, joined Harvey Nichols in early 2014

Harvey Nichols has seven stores in the UK, including its flagship Knightsbridge location in London, and seven international stores.