The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Saudi retail group, Fawaz Abdul Aziz Alhokair Co., reported annual revenues for the fiscal year ended March 31 of 4.23 billion riyals ($1.13 billion), a decrease of 20.8 percent year-on-year, resulting in a net loss of 1.1 billion riyals ($293.3 million), according to an Arab News report.
The fourth quarter showed signs of a turnaround for the retailer, with Alhokair’s total revenue decline narrowing to 4.4 percent.
“This financial year presented extraordinary challenges that no market was prepared for, creating one of the most challenging retail operating environments in living memory,” said Alhokair CEO, Marwan Moukarzel.
A bright spot on the report was the 408 percent year-on-year rise in online sales in 2020. The retailer reported total online sales in 2020 of 218.2 million riyals ($58.19 million).
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In March, it was announced that Alhokair had partnered with shopping centre operator Arabian Centers Company to buy a combined 51 percent stake in UK-based e-commerce platform Vogacloset, in a deal valued at around 68.9 million riyals ($18.37 million).
The financial report also revealed the retailer was in talks with a buyer to exit its US operations and was hopeful to conclude the sale by September 2021. It also stated it plans to exit its Balkan operations, “thereby terminating exposure to noncore, nonperforming international assets,” the report read in part.
Chanel, Louis Vuitton and Tiffany & Co are among the brands expanding in Perth, Australia in a bid to tap its mining, oil and gas wealth and newfound status as a travel hub.
This week’s round-up of global markets fashion business news also features Haiti’s sourcing crisis, Brazilian jewellery giant Vivara and Dubai’s Ramadan shopping season.
This week’s round-up of global markets fashion business news also features Supreme’s long-awaited Shanghai flagship opening, India imposes MIP on undervalued imports of synthetic knitted fabric and striking Sri Lankan workers continue to protest.
Imran Amed shares his observations from a trip to the wealthy desert metropolis, home to the most lucrative stores for many of the world’s top fashion brands.