Despite a 6% drop in turnover, which fell to £322m from £343m, the British fashion retailer managed to boost its profits thanks to effective cost-saving measures and favourable foreign exchange rates amid what it described as “relentless” cost and pricing pressures.

The company attributed the decline in turnover to a “challenging” wholesale market and rising costs.

“Our long-term strategy remains consistent and relevant, dedicated to the vision of being recognised as a trusted and leading British global lifestyle brand with distribution channels via wholesale, retail, ecommerce and licensing,” said the heritage brand.

“We always strive to deliver excellent service, remain steadfast in our commitment to the heritage and ethics of our brand, supporting sustainable recovery and long-term growth in line with our vision and values.”

In a bid to strengthen its presence in the Asia-Pacific region, the retailer opened a fulfilment centre in Singapore during the year. This move aims to better service demand in the area, which is increasingly important for the brand.

Following the results, Barbour group managing director Steve Buck said: “Twelve months ago, we anticipated that global markets would be very challenging and made the decision to focus on high-quality, profitable sales.

“This strategy has worked very well in generating strong demand for the brand with increased efficiency and profits. This approach is very much in line with the long-term view taken by the business.

“While demand for our brands has remained strong, there has been a general retraction in the UK wholesale market with several major retail and ecommerce closures.

“We have worked closely with all of our wholesale partners to focus on building quality, profitable sales during this time. This strategy has also set the brand up very well for future growth, which we are already beginning to see.”

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The luxury department store said it had put caps on orders of its Christmas hampers because of high demand, The Telegraph reported.

The retailer, which launched a pop-up in Heathrow Terminal 4 earlier this month, has been the subject of complaints across X – formerly Twitter – with some shoppers claiming they had been placed on hold for over three hours after calling the store’s customer service line.

The hampers contain a selection of luxury goods such as caviar, truffle oil, English sparkling wine, chocolates and preserves, and a selection of teas.

A spokesman for the Fortnum & Mason told the publication: “Unfortunately, a combination of high demand coupled with some staffing issues at our new distribution centre has meant some of our customers have experienced delays to their orders.

“As a result, our customer services teams are receiving an increased volume of contacts this Christmas, which has resulted in delays to response times in some instances.”

They added: “To help solve this, we’ve been limiting the number of orders that we accept, to focus on fulfilling the orders that have already been placed.

“We are truly sorry for the delays and our customer service colleagues are doing everything in their power to resolve all outstanding queries as quickly as possible.”

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Murray said: “We have huge respect for Hugo Boss, its management team, and its strategy, as well as the enormous contribution from all employees as the company makes progress towards its goals.

“I look forward to bringing my retail and transformation expertise to the board and contributing to the future success of the business.”

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The pop-up has been designed to replicate travel trunks that have sprung open to reveal various items from the luxury department store, with a hot air balloon hovering in the centre of the space.

The display features products including the brand’s tea blends, like Royal Blend, and Fortnum’s Sparkling Tea, as well as its Lossus biscuit range alongside a host of its other biscuits, preserves and sweet treats.

Product samplings are also scheduled to take place every day, with a constantly changing offer.

The retailer is providing product personalisation of its Champagne and Sparkling Tea ranges, while gift boxes with digital gift messaging that allows customers to record a video message that is shared with the recipient are also available.

The pop-up marks the 10th anniversary of the brand’s first Heathrow location in Terminal 5 and will be in place until September 2025.

It comes after Fortnum & Mason launched a takeaway coffee counter at its flagship on London’s Piccadilly in August, offering a selection of teas as well as hot and iced coffees.

In July, it also rolled out a new subscription delivery service as it sought to “bring unbridled Fortnum’s joy into peoples homes”.

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Staff at the London department store, who are represented by UVW, said they had no option but to vote for a strike as the store’s management “refuses to recognise or engage with their union for negotiations”.

They will strike from 8pm on Friday 20 December to 9.30pm on Sunday 22 December, and from 12am to 9.30pm on Thursday 26 December, The Guardian reported.

The independent union said 95% of its members at the Knightsbridge store had voted in favour of strike action as “Harrods’ management continued to ignore their demands and refused to engage or even recognise the workers’ union”.

The union added that workers’ “pay and conditions have deteriorated, even as the company rewards its owners and top executives with exorbitant payouts”.

The dispute arises from longstanding concerns over low pay, staff shortages, and excessive workloads. Workers claim management has repeatedly refused to engage with UVW to resolve their grievances, leaving them no choice but to pursue strike action.

Adding to frustrations, employees have been denied a Christmas bonus, as Harrods’ owners pocketed £180m in dividends last year. Meanwhile, the retailer’s managing director received a £2.1m salary, despite staff wages remaining stagnant.

A spokesperson for Harrods told The Guardian: “At Harrods we recognise the enormous contribution of our colleagues, particularly at busy trading periods such as Christmas … We are committed to working with our colleagues directly to address concerns, as we have been to date, and continue our constructive relationship with our recognised unions on pay and benefits.”

While a statement from the UVW said: “The potential strikes come in response to rising grievances, particularly over staff shortages and overwork, guarantees on fair pay rises in line with Retail Price Index (RPI) inflation, scrapping the cover charge in restaurants and the need for transparency over the distribution of service charge.

“Many benefits, like the Christmas bonuses and voluntary bank holiday work for cleaning staff, have been whittled away, while the world-famous luxury London store handed out £180m in bonuses to its owners and awarded a £2.1m salary to its managing director.”

The union said workers are calling for an above-inflation pay rise and the introduction of an annual Christmas bonus starting with £500 this year. The union says some workers receive a £50 voucher to spend in Harrods, which it claims is not easy to use.

They also want an end to mandatory bank holiday working for cleaners and the practice of “forcing” part-time cleaners to work nine days straight, as well as greater transparency  of the service charge, with monthly reporting and an end to the cover charge, or distributing it entirely to employees working in restaurants and kitchens.

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In his first interview since the 2021 purchase, Chirathivat told the Financial Times the price was “high” in hindsight.

“You would want the lowest price possible to buy something… is £4bn high? Yes, it’s high, especially in this environment,” he explained.

But he suggested the investment might prove worthwhile in the long term: “Maybe 10 years from now it won’t be too high, but if you ask today, then of course it’s too high.”

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Central Group, which also owns De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland, became the majority owner of Selfridges through its acquisition from the Weston family. However, the deal has not been without its challenges. Its partner Signa Holding, which co-invested in the purchase, collapsed at the end of 2023.

Chirathivat said that Central had not been aware of Signa’s dealings with Saudi Arabia’s Public Investment Fund (PIF), which led to PIF increasing its stake in the retailer to 40%. “He only told us later when it was done… that he sold part of it to the PIF,” Chirathivat revealed.

Despite the setbacks, Central is focused on revamping Selfridges, particularly its flagship store on Oxford Street, with plans to enhance the six-floor space with new products, services, and more luxury brands.

“We have three good floors [of six]… we are working to improve every area,” Chirathivat said.

“The grand plan for Selfridges is to become the best store in the world. Right now, it’s probably in the top five.”

To lead this transformation, Central appointed André Maeder who joined in May, as CEO of Selfridges Group. Chirathivat remained optimistic about the future and told the FT “We can do a lot more.”

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Employees from the department store’s retail, restaurant, kitchen, and cleaning departments that are part of the United Voices of the World (UVW) union have voted in favour of industrial action on 19 December, with 95% backing the move.

The dispute arises from longstanding concerns over low pay, staff shortages, and excessive workloads. Workers claim management has repeatedly refused to engage with UVW to resolve their grievances, leaving them no choice but to pursue strike action.

Adding to frustrations, employees have been denied a Christmas bonus, as Harrods’ owners pocketed £180m in dividends last year. Meanwhile, the retailer’s managing director received a £2.1m salary, despite staff wages remaining stagnant.

UVW members are requesting an annual bonus, guaranteed annual pay increase above RPI inflation, more staff across multiple departments and the tnd mandatory bank holiday work for cleaners.

It is also asking for the luxury department store to end the practice of forcing part-time cleaners to work 9 days straight, full transparency of the service charge,with monthly reporting, and a daily meal allowance for restaurants and kitchen workers.

Harrods waiter and UVW member Alice Howick said: “As one of the world’s leading luxury department stores, Harrods should be setting the standard for retail and hospitality workers.

“Instead, we are earning the living wage and denied basic benefits such as a food allowance and Christmas bonus — something which should be commonplace in a company accumulating millions of pounds in profit, year on year.”

A Harrods spokesperson told Morning Star: “Those that have voted to strike, which amounts to 176 employees (approximately 10% of colleagues collectively in these specific affected areas), are a fractional minority of our workforce and we have contingency plans in place over the Christmas period to ensure our services are not disrupted by this planned action.

“We are committed to working with our colleagues directly to address concerns, as we have been to date and continue our constructive relationship with our recognised unions on pay and benefits.”

Harrods has been in the spotlight recently over serious allegations of rape and sexual abuse against its former owner, Mohammed Al Fayed.

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However, the luxury watch retailer’s adjusted EBIT dropped 9% to £66m in the 26 weeks to October 27, due to acquisition-related costs and integration efforts. Statutory profit before tax also fell 39%, reaching £41m.

Group revenue during the period increased 4% on a constant currency basis, driven by improved demand during its second quarter.

The US market was a standout, with revenue growth of 24% in Q2, while the UK and Europe saw a slight decline of 1% to £430m.

Watches of Switzerland CEO Brian Duffy said: “We are pleased to report H1 FY25 revenue growth of +4% in constant currency, reflecting an encouraging improvement in trading in Q2. This was driven by growing demand in the UK and US, alongside the acquisition of Roberto Coin during the period.”

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Luxury watch sales declined 2% in constant currency, impacted by one-off stock increases in Q1. However its pre-owned watch business performed strongly, with Rolex Certified Pre-Owned now becoming the group’s second-largest luxury watch brand.

In contrast, luxury jewellery reported strong growth, up 104% in constant currency, largely due to the Roberto Coin acquisition, which contributed £51m in revenue. Excluding Roberto Coin, luxury jewellery revenue fell 6%, with the UK market showing positive signs of recovery.

Despite the challenges, Watches of Switzerland is confident in its full-year forecast. Duffy added: “Q3 trading has started encouragingly, and with key showroom openings and ongoing digital improvements, we are well-positioned for a strong second half.”

The retailer also reported significant progress in its showroom expansion plans, with new openings scheduled for London, Manchester, Texas, and Florida.

Meanwhile the acquisition of Hodinkee, a leading global platform for luxury watch enthusiasts, is set to bolster the group’s online presence.

Looking ahead, Watches of Switzerland is maintaining its full-year guidance, expecting revenue to reach between £1.67bn and £1.73bn representing growth of 9% to 12% at constant currency.

“We are well positioned for a good holiday trading period,” added Duffy. “Our significant showroom investments and momentum in the US and UK markets give us confidence in our outlook for the second half of FY25.”

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The luxury fashion brand launched High Court proceedings on Monday, claiming that the discount chain was falsely representing its goods as Burberry, Sky News reported.

It is unclear what the specific claim relates to but B&M has sold a line of “furberry” branded pet accessories, including dog bowls, toys, animal blankets, mats and beds this year. The items featured a print with red, white and black checks on a beige background.

Burberry said it will not be commenting on the High Court action and B&M did not respond to the publication’s request to comment.

The luxury brand unveiled a turnaround programme in November after it posted an adjusted operating loss of £41m in the six months ending 28 September.

The fashion house, which also introduced a £40m cost-saving initiative, will focus on its core strengths, including its popular outerwear and scarves, while re-aligning pricing, particularly in leather goods, to better reflect its category authority.

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The luxury brand’s losses swelled to £15.7m for the 26 weeks ended 28 September, compared to £12.8m in 2023, as sales plunged 19% to £56.1m.

CEO Andrea Baldo noted: “Though I’ve only been in the role of CEO for under three months, the first half results illustrate the clear need to reprioritise and rebuild the business…

“We are now working on initiatives to renew the brand’s relevance, initially for UK consumers and then for our international audience.”

The retailer has taken “decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position” in response to the current market conditions.

Baldo said it had started “reviewing its internal team structure”. It has also “made strategic adjustments” to its product, pricing, and distribution strategies.

The retailer is set to cut a quarter of its head office staff, according to The Guardian.

The results come amid wider struggles for the luxury market, with Burberry profit plunging 36% earlier this year as it grappled with a challenging economic environment.

Last month, Mulberry fought off a takeover approach by Mike Ashley’s Frasers Group, its second largest shareholder.

The Sports Direct owner, which holds a 37% stake in the luxury retailer, had submitted a revised cash bid earlier this month, offering 150p per share, which valued the business £111m.

But Mulberry’s board deemed the offer “untenable” after majority shareholder Challice, which owns 56%, said it had “no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards the possible offer”.

Frasers described the decision as a “disappointing outcome” and added that it had “become increasingly concerned over the governance of Mulberry, the apparent lack of a commercial plan against a backdrop of increasing market headwinds, and critically, the financial position in which Mulberry currently finds itself”.

Despite dropping its bid, the group has called for the appointment of a Frasers representative to the Mulberry board.

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