What: Sales dipped 2.9% to GBP 222 million in the 12 months to March 30, 2020, just as the COVID-19 pandemic began taking its toll on business.

Why is it important: Due to substantial investments in e-commerce and online operations, the retailer’s EBITDA was down 48% to GBP 7.2 million pounds in the period.

The consolidated results pertain to all Harvey Nichols stores in the U.K. and the Republic of Ireland, including the Knightsbridge flagship. The results also include franchise income from the group’s six international stores in Dubai, Riyadh, Kuwait, Doha and Hong Kong, which operate under license.

The group described the 12 months to March 2020 as a “challenging year” due to a variety of factors. Although Harvey Nichols was forced shut in the final weeks of its financial year, the temporary closures, and a lack of international tourists, still took a bite out of sales.

During the 2019-20 fiscal year the company invested further in its IT infrastructure and CRM program, and introduced a Fragrance Room to the Knightsbridge flagship. Harvey Nichols said it would continue to invest in its online channels and stores to ensure that it can drive profitable growth going forward.

In fiscal 2019-20, online sales grew 33% compared with the previous year, and the trend has continued into fiscal 2020-21. Harvey Nichols said online sales grew a further 69% in the 12 months to March 2021.

Harvey Nichols Emerges From Tough Year of COVID-19 Damage, Investment