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  • 21-11-21

    Saudi Alhokair profits surge as it gets rid of outlet stores

    (MENAFN) After registered firms on the Saudi Stock Exchange, Tadawul, announced profits, Arab News examined the revenue accounts of three food shops and one fashion chain. Only Alhokair, mostly a clothing chain, increased its earnings.

    Increasing sales at Alhokair saw yearly revenues increase 75 percent to reach SR1,311 million (about USD349.2). A drop in depreciation and amortization was also a reason because of shop closings. Finance budgets plummeted by more than 25 percent as the firm sustained its strategy of closing up unprofitable outlets. The corporation also leads a much smaller food business.

    Ahmed Belbesy, the firm’s CFO, reported to Al Arabiya in a new interview, “the pandemic helped make quick decisions to get rid of stores, and during the last seven fiscal quarters, about 600 unprofitable stores were closed. At the same time, 300 new stores were opened.”

    He clarified that throughout the first two quarters of 2021, from the beginning of April, the company launched 11 food branches. As for clothing brands, the firm kept on getting rid of branches that do not make enough sales.

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