Harrods and Fenwick have both shown signs of recovery, their results reveal, while Harvey Nichols battles for survival.

Harrods posted profits of £84.9million for the 12 months to the end of January, after making a £34.3million loss a year earlier.

That loss came after it paid compensation to more than 100 victims of abuse by its former owner Mohamed Al-Fayed. 

But while the department store is back in the black, it is still feeling the effects of the tourist tax, which stops foreign shoppers reclaiming VAT. 

Finance chief Geoff Weaver said: ‘Harrods remains cautiously optimistic.’

Fenwick said it reduced annual losses from £35million to £22million last year. 

The UK’s largest family- owned department store has seen signs of progress after collaborations with brands including Greggs and Barbour. 

Sales rose 2.5 per cent over the year to January 31.

But Harvey Nicks’ future was still in doubt last night as entrepreneur Mike Ashley’s retail group Frasers worked on a deal to buy the loss-making chain.

Harvey Nichols this week warned it will close within a year if a buyer or fresh cash is not found.