What: Harvey Nichols is not improving and tests the patience of its shareholder, Dickson Poon

Why it is important: All dominos may not have yet fallen in the UK

Harvey Nichols has faced continual financial losses for the fourth consecutive year, relying on a GBP 25 million bailout from its primary shareholder, Broad Gain, a subsidiary of Dickson Investment Holding owned by Hong Kong businessman Dickson Poon. In 2023, revenue rose to GBP 79 million from GBP 57 million the previous year, yet the loss remained at GBP 4 million. No dividends were distributed, similar to 2022. In response to increased difficulties due to inflation, Brexit outcomes, and the crisis in Ukraine, Harvey Nichols closed a branch in Hong Kong and reduced its workforce. These measures are part of a broader crisis affecting department stores since the pandemic. The situation at Harvey Nichols is further complicated by leadership changes, with CEO Manju Malhotra resigning and Julia Goddard taking over in April 2024. Competitively, Selfridges faces its own financial troubles, with the bankruptcy of its shareholder Signa and potential acquisition interest from the Saudi Public Investment Fund.

Harvey Nichols ends up in red for the 4th consecutive year