MUSCAT: Lulu Retail delivered a solid financial performance in the first half of 2025, posting a 9.1% year-on-year increase in net profit to $127 million, supported by revenue growth of 5.9% to $4.1 billion. Like-for-like sales rose 3.8%, with strong momentum in private label products and e-commerce driving this growth. During the second quarter, revenue reached $2.0 billion, up 4.6% year-on-year, while gross profit increased by 6.5% to $468 million. EBITDA improved by 7.6% in Q2 to $204 million, driven by margin enhancements and operational efficiencies. The company also confirmed plans to open 20 new stores by the end of the year, reinforcing its strategic focus on network expansion and category diversification.
Private label sales continue to play a significant role in Lulu’s success, growing 3.5% year-on-year in Q2 and now representing 29.7% of retail revenue. E-commerce demonstrated exceptional performance, with sales jumping 43.4% year-on-year to $108 million, accounting for 5.6% of retail revenue. This growth reflects Lulu’s commitment to digital transformation and the adoption of omnichannel strategies that cater to evolving consumer behavior. The company also saw a 45.4% increase in e-commerce customer count, underlining the effectiveness of its online engagement initiatives. Loyalty programs remain a cornerstone of its customer retention strategy, with the Happiness program adding 1 million new members during the quarter, bringing total membership to 7.3 million.
Regional markets delivered robust contributions to the overall growth, with the UAE remaining the largest and fastest-growing market, reporting a 9.4% revenue increase in Q2, driven by strong demand for fresh food and the success of its omnichannel strategy. Saudi Arabia registered a 3.8% revenue rise, supported by higher electrical goods sales and new store openings. Kuwait maintained steady growth with a 4.9% increase, reflecting consistent performance in established markets. These results emphasize Lulu’s regional strength and the scalability of its retail model across diverse markets in the Gulf region.
In line with its commitment to shareholder value, Lulu Retail declared an interim dividend of $98.4 million (3.5 fils per share), representing a payout ratio of 78% of H1 distributable profits, in line with its IPO dividend policy. Looking ahead, the company expects its growth trajectory to continue, fueled by private label expansion, e-commerce innovation, and strategic store rollouts. CEO Saifee Rupawala reaffirmed the company’s dedication to operational efficiency and long-term sustainability, highlighting that these efforts will help Lulu maintain strong momentum in the second half of the year and beyond.
