Lulu Retail Reports $4.1 Billion First-Half Revenue, Profit Up 9%

Riyadh, Saudi Arabia - August 19, 2025: Lulu Retail Holdings reported solid earnings for the first half of 2025, with revenue climbing to $4.1 billion, a 5.9 percent increase from a year earlier, supported by higher store traffic, expanding e-commerce sales, and resilient consumer demand across the Gulf region.

The company, the largest full-line retailer in the GCC, said net profit for the period rose 9.1 percent to $127 million, while revenue in the second quarter alone reached $2 billion, up 4.6 percent. Profitability also improved, with EBITDA for the quarter rising 7.6 percent to $204 million as margins widened.

Chief Executive Saifee Rupawala credited the results to a combination of operational efficiency and consistent consumer demand. “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,” he said. “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.”

The retailer continued its expansion drive, opening seven stores in the first half and another four in July, bringing its total to 259 outlets across the Gulf. Rupawala added that the company’s loyalty program remains a key growth lever, with one million new members joining in the second quarter, lifting total membership to 7.3 million.

Fresh food, one of Lulu’s strongest categories, drove much of the growth, rising 11.2 percent in the second quarter. Electrical goods also saw double-digit gains after targeted promotions. Meanwhile, the group’s e-commerce operations surged 43 percent in the quarter, generating $108 million and now contributing 5.6 percent of retail revenue. Private label products, a higher-margin segment, accounted for nearly 30 percent of retail sales.

Geographically, the United Arab Emirates remained Lulu’s growth engine, with sales up 9.4 percent in the second quarter, buoyed by strong food demand. Saudi Arabia, another key market, delivered 3.8 percent growth, helped by electrical goods sales and new store openings. Kuwait also advanced 4.9 percent, while revenue was flat in Qatar and slightly lower in Oman.

The company said it remains on track to open 20 stores in 2025, while also rolling out new digital offerings. Initiatives include quick commerce delivery, an expanded presence on aggregator platforms, and the “LOT” store-in-store concept aimed at value-focused fashion and lifestyle shoppers.

On the balance sheet side, net debt stood at $2.5 billion, largely unchanged from year-end 2024, with leverage expected to ease in the coming years. The board declared an interim dividend of $98.4 million, equal to 3.5 fils per share, representing 78 percent of first-half distributable profit.

“Our position as the largest pan-GCC full-line retailer makes us well-placed to continue our growth journey,” Rupawala said, citing the company’s strategy of deepening its existing network, opening new outlets, and boosting margins through private label and online channels.