Lulu Retail Holdings reported a 5.9 per cent year-on-year jump in its first six month (H1) revenue, clocking sales of US$4.1 billion. For the second quarter (Q2) of the year, the company reported revenue of US$2.0 billion, up 4.6 per cent YoY.
The largest pan-GCC full-line retailer revealed its EBITDA for H1 was up 7 per cent YoY at US$418 million, with a Q2 contribution of US$204 million, which was up 7.6 per cent YoY. Margins improved by 28 bps during Q2, reflecting strong operational performance.
With seven new stores opening in the first six months, net profit was at US$127 million, up 9.1 per cent YoY, with a net margin of 3.1 per cent. The company is on track to open nine more stores this year.
Lulu’s profits surge on strong sales
Lulu experienced a massive surge of 43 per cent increase in its e-commerce sales, which reached US$108 million, or 5.6 per cent of its retail revenue. Private label, a higher-margin segment, recorded 3.5 per cent YoY growth in Q2 and accounted for 29.7 per cent of retail revenue.
The company said its established growth levers – driving growth in existing store network, opening new stores, driving operational efficiencies and delivering further upside through private label and e-commerce offerings – will continue the momentum in the future.
Saifee Rupawala, Chief Executive Officer of Lulu Retail, commented: “Our steady and resilient H1 2025 performance is a testament of our well-established growth pillars that has helped us to deliver record sales and supported progression on margins.
“Average basket value, customer count and sales per square metre all increased positively over the first six months of the year, as 690,000 daily shoppers choose Lulu for our value-to-premium offering.
“Expansion continues in line with our strategy with seven stores opening in H1 2025 and further four in July, taking the total store count to 259. Our loyalty program continues to grow, with approximately 1 million new members joining during the second quarter, taking the total count to 7.3 million.”
Lulu’s growth was led by continuing high demand in the higher margin Fresh Foods department, which grew at 11.2 per cent during Q2 and at 9.6 per cent for H1. A decision to pursue promotional activity to increase footfall in Q1 has led to Electrical Goods growing at 10.6 per cent YoY for the quarter and 19.6 per cent for H1.
Lulu experienced “strong growth” in the UAE and also “good growth” in Saudi Arabia. The UAE, Lulu’s largest market, recorded Q2 revenue growth of 9.4 per cent YoY. A key component for this was the continuing strong demand for fresh food, which was leveraged through Lulu’s omni-channel offerings.
In KSA, revenue rose by 3.8 per cent YoY for the quarter. There was a particularly high growth in sales of electrical goods. Revenue also benefitted from new store openings. Kuwait had a revenue growth of 4.9 per cent for the quarter.
However, revenue in Qatar grew by only 0.1 per cent, while it declined by 1 per cent in Oman on account of flat supermarket sales.
