RIYADH – Leading Saudi retail franchise company Fawaz A. Alhokair and Company has posted a net profit of SR120.9 million ($32.24 million) for the quarter ended June 30, up 48 percent compared to SR81.6 million last year. Annoucing the results Wednesday, Alhokair said the company had registered an increase of 38 percent compared to the previous quarter's SR87.3 million. The gross profit for the first quarter too grew 21 percent to hit SR406.4 million compared to SR334.7 million last year. The operating profit amounted to SR104.6 million, posting an increase of 12 per cent over last year's SR92.7 million. The earnings per share (EPS) for the three months ended June 30, 2012 was seen at SR1.73 compared to last year's SR1.17, it said. The growth in net profit was mainly due to an increase in operating profit from increased same store sales, an increase in the number of stores, the adding of new brands, and to the increase in other income due to additional investments income and foreign exchange gains. The increase was a result of a SR39.5 million ($10.53) increase in operating profit related to increase stores profits, it added. Alhokair retail franchise activities operate over 70 international fashion brands through over 1,200 fashion stores, and employ over 4,000 employees. The group operates department stores and fashion brands including Marks & Spencer, Gap, Zara and Mango. Alhokair CEO Simon Marshall said "our global strategy, encompassing the US as well as the emerging markets of the CIS Region, enhances and augments our domestic position within Saudi Arabia and the wider MENA region." "We continue to enjoy the trust and confidence of existing brand partners, while attracting the interest of new brand partners from around the world. In addition to those agreements announced during the previous year, we will, within the weeks ahead, be announcing further strategically important partnerships with other global retailers," he added. "We remain focused on growing revenues by protecting the brand integrity of those brands we are privileged to represent, and providing our customers with the best and most appealing fashion retail experience in the markets that we serve," he noted. – SG/Agencies
