Alhokair quarterly net profit rises to SR 252.4 m

Saudi fashion retail giant Fawaz A. Alhokair and Co. (SJSC), saw its second quarter net profits ended Sept. 30 rise to a record SR 252.4 million, an increase of 25 percent compared to the same period last year, and an increase of 108.7 percent compared to the first quarter of 2012. The earnings reflect an increase of 30.4 percent in gross profits and an operating profit increase of 24.8 percent compared to the same period last year. Alhokair manages some of the best-known brands in the Kingdom, including Zara, Marks & Spencer, Gap, Aldo, The Children’s Place, Lasenza and earlier this year increased its number of stores and the brands it carries through its acquisition of Nesk Group for Trading Projects LLC. The acquisition added more than 120 retail shops to Alhokair’s existing network of over 1,200 stores. The purchase also added to the Alhokair brand portfolio’s modern and trendy fashion concepts, including Mango, Stradivarius, Gerry Weber, Okaidi, Obaibi, Women’s Secret, IKKS, BLU, Origen, Tiffosi, and Oui, significantly contributing to the expansion of the retail giant’s fashion retail footprint. In addition to its expansion, the second quarter profits increase was influenced by the seasonal factor of the vibrant sales during the holy month of Ramadan. Net profit for the half year ended September 2012 was SR 373.3 million, and contributed to Earning Per Share (EPS) of SR 5.33, compared to SR 4.05 for the same period last year. Operating profits for the period reached SR 375.07 million, an increase of 26.9 percent compared to the same period last year SR 295.5 million. Commenting on the results, Fawaz A. Alhokair and Co. 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.” 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. Alhokair retail franchise activities operate over 70 international fashion brands through more than 1,200 fashion stores in 9 countries and employ over 7,000 employees. From : Arabs News