What: Fortnum & Mason experienced financial recovery with increased sales, but ongoing challenges in the economic environment remain.

Why it is important: Fortnum & Mason's recovery is significant as it reflects the resilience and adaptability of luxury retail in the face of global challenges like the COVID-19 pandemic. It also underscores the evolving retail landscape, with a notable shift towards online sales.

Fortnum & Mason reported a 34% increase in turnover at its UK stores, returning to pre-COVID levels, driven by domestic demand and international customers. The company, known for luxury food, drink, and gift items, saw online sales comprising 36% of total retail sales, despite a decline from the previous year's pandemic-driven surge. The overall turnover rose 12% to EUR 208.6 million, with pre-tax profit up 23% to EUR 7.5 million, though still lower than pre-pandemic levels. The company invested EUR 8.2 million in its operations, including opening a new store in Hong Kong airport. Despite the positive recovery, Fortnum & Mason anticipates challenging conditions and economic headwinds in the future.

Fortnum & Mason sales recover but challenges remain