Saudi retailer Fawaz Alhokair reports profit fall of 56 per cent in Q3
today Jan 19, 2017
Saudi Arabian retailer Fawaz Abdulaziz Alhokair reported a 56 percent fall in third-quarter net profit on Thursday due to a seasonal decline in revenue.
The company made a net profit of 40.49 million riyals ($10.80 million) in the three months to Dec. 31, down from 91.2 million riyals in the year-earlier period, according to a bourse filing. Alhokair's financial year starts on April 1.
EFG Hermes had forecast the company would make a quarterly profit of 61.2 mln riyals during the quarter. NCB Capital had forecast a profit of 37.0 mln riyals.
Alhokair, which owns franchise rights for brands including Mango, Zara and Banana Republic in the Middle East, also said additional markdowns made during the sales season to make up for softening demand drove down income.
Quarterly sales fell 1.7 percent year on year to 1.43 billion riyals.
Retail names in Saudi Arabia have struggled in 2016 as a protracted slump in oil prices put government and consumer spending under pressure.
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