Manju Malhotra Out as CEO at Harvey Nichols, Owner’s Son Pearson Poon Steps In as Vice Chair
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LONDON — Manju Malhotra, chief executive of Harvey Nichols, is stepping down.
She was appointed to the big job at the luxury department store in January 2021, reporting to Sir Dickson Poon, the chairman and owner of Harvey Nichols since 1991.
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Malhotra has been part of Harvey Nichols for 25 years and will leave her role at the end of the year.
Poon’s 29-year-old son Pearson will take on the role of vice chairman until a new CEO is found.
It has been reported in the British newspapers that Malhotra and Poon didn’t see eye-to-eye on the plans for the business, to which a spokesperson for the department store said, “Harvey Nichols notes the recent press coverage alleging to a dispute between CEO Manju Malhotra and Harvey Nichols’ shareholder. The Group would like to reiterate that this is incorrect, the departure is on amicable terms with Manju working her notice period to ensure a smooth transition.”
“On behalf of the Board, I want to thank Manju for her loyalty over the years and leadership since becoming CEO. Manju has been instrumental in driving the business through unprecedented times and laid out strong foundations which we will continue to build on for the future,” said Poon in a statement.
Malhotra was chief operating officer of Harvey Nichols before becoming CEO. She has held a number of roles before becoming finance director in 2010.
In 2018, she was promoted to co-COO alongside Daniela Rinaldi, who stepped down from her role in November 2019.
“I have had the most amazing 25 years at Harvey Nichols, starting from a member of the finance team to becoming CEO. I have been fortunate to work with many wonderfully talented people and partners both in the UK and internationally,” said Malhotra in another statement.
“Together, we have galvanised Harvey Nichols, leveraging its position in the market as a luxury destination delivering exceptional in-store and digital customer experiences,” she added.
Malhotra was praised by Pearson, where he said she “demonstrated great commitment towards the brand.”
Harvey Nichols saw revenues jump 58 percent to 191.7 million pounds in the 53 weeks to April 2, 2022, as international visitors began to return to London after the COVID-19 pandemic came to an end.
The business logged 222 million pounds in revenues in the 12 months to March 30, 2020.
According to its latest Companies House filing, the store’s earnings before interest, taxes, depreciation and amortization, or EBITDA, were greatly improved from a loss of 28.5 million pounds in the previous year to a loss of 3.15 million pounds in the year ended April 2, 2022. Total comprehensive loss for the period narrowed to 28.1 million pounds from 40.9 million pounds.
Gross margin jumped almost 10 percent to 47.1 percent from 37.3 percent. The company said the increase in turnover and margin rate was boosted by “business reopening and ongoing discipline on costs.”
The consolidated results, published under the parent company Broad Gain (U.K.) Ltd., pertain to all seven 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, Saudi Arabia; Kuwait; Doha, Qatar; and Hong Kong, which operate under license.
The Companies House filing from Harvey Nichols and Company Ltd., which reflects the performance of its Knightsbridge flagship, showed that the location’s turnover in the same period increased by 111.6 percent to 57.8 million pounds from 27.3 million pounds.
Compared to a bigger recovery on a group level, the flagship’s performance is still far behind its pre-pandemic level: 81.27 million pounds in fiscal 2019-20.
Malhotra joined a slew of high-profile business leaders in July urging the British government to reintroduce tax-free shopping for international visitors.
She warned that the U.K. will “lose another summer” of business as international shoppers would snatch up designer goods in Paris and Milan over London due to more favorable pricing.
A parliamentary debate on the issue is set for Sept. 7 at Westminster Hall. The debate in the presence of the Treasury is the result of a campaign by the Association of International Retail and New West End Company, which oversees hundreds of retail and hospitality businesses around Regent and Oxford streets.
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