Saudi Arabia's leading fashion retail Fawaz Abdulaziz Alhokair & Company on Wednesday announced that it registered total retail sales of SR1.58 billion in the fiscal year ending March 31, 2008, an increase of 6.92 percent compared to SR1.48 billion for the corresponding 12-month period in 2006-07. Gross profits for the 2007 fiscal year also increased, reaching SR674.98 million, up 3.25 percent compared to SR653.68 million for the corresponding period in 2006-07. It is part of the Fawaz Al-Hokair Group, a diversified real estate, retail and investment business group with over 9,000 employees and SR8 billion of revenues. “The company successfully delivered on its business plan with strong sales growth compared to the prior year in a highly competitive market,” said Dr. Abdulmajeed Alhokair, managing director of Fashion Retail. “We signed and launched some very significant brand partnerships last year, in particular GAP, which will support our growth plans for this financial year. I am pleased with the progress the business has made in developing its infrastructure in terms of management, logistics and technology, which has secured us a strong and robust platform for future growth, and which will allow us to protect our number-one market position in retail fashion while diversifying into new sectors. The company also declared a generous bonus issue of three shares for every four shares held, and paid an interim dividend of SR70 million in October 2007. Additionally, the board of directors has proposed an annual dividend to be paid to shareholders holding their shares on the date of general assembly meeting as per local laws.” For the fiscal year ending March 31, 2008, net profit for the business was on track at SR 201.4 million, down from SR 247 million the previous year. “The reduction in profitability was both planned and expected. Although we saw an increase in gross profits of 3.25 percent, to SR 674.98 million, the increased investment in new brand partners and improved infrastructure impacted the bottom line,” said Gerry Waters, chief executive officer of the company. “During the 2007 fiscal year, we undertook a range of significant steps to consolidate our leadership position, opening 94 new stores in prime locations, contributing to sales growth. We introduced six new brands well aligned with our portfolio, while letting go of seven brands that were not performing up to expectations,” he added. “Our focus for the next fiscal year is to realize the investments we have made in the business, with a focus on strong sales growth linked to an increased focus on productivity, which is expected to show a significant improvement in bottom-line profitability,” said Stewart Macphail, group chief executive officer for the Al-Hokair Group. “Today more than ever, Al-Hokair is reinforcing its market leading position in the Kingdom's extremely high-growth retail sector." __
