Tea and biscuits boost Fortnum & Mason profits
Fortnum & Mason has announced a 26% increase in profits for the year ending July, helped by the demand for tea and biscuits.
The store posted sales growth of £126m (12%) and a £9.6m increase in profits on Friday afternoon.
The strong performance was helped by a 21% increase in online sales and growth in Hong Kong, where sales rose by 55%.
Sales at the brand’s travel sites – St Pancras and Heathrow Terminal 5 – were up 12%.
Domestically, loose leaf tea and British biscuits were the mainstay, with demand for both up by 21%.
Chief executive Ewan Venters said: “This year has not been without its challenges, but we’re proud to report another exceptional trading period.
“By being faithful to our heritage and pedigree, focusing on the creation of extraordinary products and exceptional service, and delivering our world-renowned products to customers anywhere in the world, I am pleased that we are able to meet the growing demand for quality and impeccably-sourced products.
“I am particularly pleased with the increase in sales in South East Asia and have great hopes for our two new spaces in South Korea.
“Our domestic performance shows that in difficult times, the calming properties of a good cup of tea and a biscuit are especially important.”
The luxury retailer dates back to 1707, when it was founded in London’s Piccadilly.