Fawaz A. Alhokair and Co. second quarter net profits increase to record SAR252.4m

The earnings reflect an increase of 30.4% in gross profits and an operating profit increase of 24.8% 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 had 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 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 SAR373.3m, and contributed to Earning Per Share (EPS) of SAR5.33, compared to SAR4.05 for the same period last year.

Operating profits for the period reached SAR375.07m, an increase of 26.9% compared to the same period last year SAR295.5m.

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 over 1,200 fashion stores, 9 countries and employs over 7,000 employees.