Saudi retail giant Alhokair Q2 profit up 25pc
Riyadh, October 22, 2012
Saudi fashion retail giant Fawaz A. Alhokair and Company said its net profit for the second quarter hit a record SR252.4 million ($67.1 million), up 25 per cent when compared to the same period last year.
A retail franchise company headquartered in Saudi, Fawaz A. Alhokair partners with more than 70 brands spread across over 1200 stores in 9 countries.
The company's key brands include Mango, Stradivarius, Gerry Weber, Okaidi, Obaibi, Women’s Secret, IKKS, BLU, Origen, Tiffosi, and Oui which have been significantly contributing to the expansion of the retailgiant’s fashion retail footprint, said a statement from the company.
The Saudi retail giant has operations in Jordan, Morocco, Egypt, Kazakhstan, Azerbaijan, Georgia, Armenia and the US.
Alhokair said its net profits ended September 30 increased by 108.7 per cent compared to the first quarter. The earnings reflect an increase of 30.4 per cent in gross profits and an operating profit increase of 24.8 per cent compared to the same period last year, it added.
Commenting on the results, Fawaz A. Alhokair and Company CEO Simon Marshall said: “Our expansion strategy across brand acquisitions and new store introductions has allowed us to keep our offerings to our customers up to date with the latest fashions. We continue to provide an unparalleled shopping experience across our outlets.”
Alhokair manages some of the best-known brands in the Kingdom, including Zara, Marks& Spencer, Gap, Aldo, The Children’s Place, Lasenza had earlier this year increased its number of stores and the brands it carries through its acquisition of Nesk Group for Trading Projects.
The acquisition added more than 120 retail shops to Alhokair’s existing network of over 1,200 stores.
In addition to its expansion, the second quarter profits increase was influenced by the seasonal factor of the vibrant sales during Ramadan, said Marshall.
Alhokair's net profit for the half year ended September 2012 was SR373.3 million and contributed to earning per share (EPS) of SR5.33 compared to SR4.05 for the same period last year.
The operating profits for the period reached SR375.07 million, an increase of 26.9 per cent compared to the same period last year SR295.5 million, the official said.
The period also saw the application of the direct cost method by calculating the gross after deducting all stores’ direct costs, as well as expansion in the Armenian market with 25 international brands, he added.-TradeArabia News Service