Upscale retailer Harvey Nichols said on Thursday its profits tumbled 20 per cent last year as its flagship London store was hit by the slump in tourist-spending in the wake of the September 11 terrorist attacks.

The company said in a statement that total pre-tax profits fell to £12.5 million from £15.6m with sales up £3.5m to £140.4m thanks to a strong performance from its Leeds store.