LuLu Retail has announced its H1 2025 financial results, delivering a solid 9.1 percent year on year increase in net profit to $127 million. The revenues rose to $4.1 billion (up 5.9 percent YoY), and like-for-like sales increased by 3.8 percent, driven by robust performance across key categories.

In Q2, the company reported revenues of $2 billion, up 4.6 percent YoY with a strong sales growth. This performance was bolstered by continued growth in the private label and e-commerce categories.

LuLu’s private label grew 3.5 percent YoY, accounting for 29.7 percent of retail revenue, while e-commerce maintained its momentum with sales up 43.4 percent YoY to $108 million, representing 5.6 percent of retail revenue. The gross profit increased 6.5 percent YoY to $468 million. The EBITDA grew 7.6 percent YoY to $204 million.

LuLu Retail has declared an interim dividend of $98.4 million (3.5 fils per share), corresponding to a payout ratio of 78 percent of H1 2025 distributable profits — consistent with the IPO dividend policy.

Meanwhile, LuLu’s Happiness loyalty program added 1 million new members during the quarter, bringing the total membership to 7.3 million.

LuLu opened seven new stores in H1, in addition to four more in July, taking the total to 259. Its full-year target of 20 new stores remains on track.

“Our steady and resilient H1 2025 performance is a testament to our well-established growth pillars, enabling record sales and margin improvements. We expect our growth momentum to persist as we focus on expanding our store network, launching new outlets, enhancing operational efficiency, and unlocking further potential through private label and e-commerce offerings,” said Saifee Rupawala, CEO of Lulu Retail.

Regional performance

In the UAE, LuLu’s largest market, the Q2 revenue was up 9.4 percent YoY, driven by continued high demand for fresh food and supported by LuLu’s omni-channel strategy. In Saudi Arabia, the revenue grew 3.8 percent YoY, aided by strong electronic goods sales and new store openings. Meanwhile, in Kuwait, the revenue grew by 4.9 percent YoY, showing a consistent positive performance.

News Credits- ARAB NEWS

The GCC in India will play a central role in driving efficiency, innovation, and growth for over 60 million customers worldwide, the company said in a statement.

News Credits- DECCAN HERALD

Eighty-four percent say they plan to save more this year, and 82% say they’re on the lookout for discounts and sales

Women’s purchasing power in South Africa is no longer a niche consideration – it’s a defining force in the economy. From grocery aisles to online platforms, women (especially those who are employed) are influencing spending, shaping brand expectations, and building loyalty that goes far beyond the point of sale.

To mark Women’s Month, consumer insights agency KLA used YouGov Profiles data to explore how South African women are engaging with brands in 2025.

Brand loyalty is intentional and informed

When it comes to loyalty, South African women are clear about their expectations. Eighty-seven percent agree that “loyalty programmes are a great way for brands to reward customers”, 86% believe all brands should offer them, and 85% sign up when given the chance.

These figures speak to more than marketing engagement – they reveal a consumer base that is highly brand-aware and values reciprocity. For women, loyalty isn’t earned through convenience alone. It requires value in the form of discounts, personalised rewards, and meaningful perks.

Notably, employed women, a group that is more economically active, more digitally integrated, and more influential – show higher levels of participation, discernment, and brand engagement.

Convenience, digital integration, and local support matter

Eighty-four percent of South African women say online shopping makes their lives easier – a number that rises to 86% among employed women. This reflects the growing importance of digital convenience, especially in the wake of post-pandemic habits, time constraints, and ongoing safety concerns.

At the same time, 84% of women say they actively try to support local businesses – a clear indication that convenience and community consciousness are not mutually exclusive. Purchasing decisions are increasingly tied to ethical awareness, local relevance, and a desire to see small businesses thrive.

Utility meets emotional resonance

Eighty-two percent of women prefer to buy products that make life easier. But utility isn’t the only driver. Women also expect emotional connection.

In fact, 86% agree that “a gift is an expression of how special someone is.” For many women – often the default gift-givers in families – shopping is about more than function. It’s about meaning, memories, and expressing care.

Budget-smart, not budget-limited

Financial responsibility is top of mind in 2025, especially for women. Eighty-four percent say they plan to save more this year, and 82% say they’re on the lookout for discounts and sales.

Importantly, this isn’t about cutting back – it’s about making smart choices. Women want to feel empowered in how they spend, ensuring they’re making decisions that support their households, their futures, and their values.

Sustainability is a deal-breaker

Eighty-two percent of women say they prefer brands that are sustainable. This is a significant insight for businesses still playing catch-up on environmental practices. Whether it’s sustainable packaging, reduced emissions, or ethically sourced products – women are paying attention. And they expect brands to do the same.

Women know what they want – and they stick with brands that deliver

South African women are financially aware, digitally connected, emotionally intuitive, and value-driven. They expect:

– Loyalty rewards

– Online convenience

– Local and sustainable options

– Emotional connection to the brands they support

– Smart spending opportunities that align with their long-term goals

And when they find these things, they stick around.

Methodology

YouGov Profiles is a segmentation and media planning tool. With data collected daily, it provides a comprehensive view of consumers’ worlds.

– Dataset: 2025-05-18

– Population: South African females with access to the internet, aged 18+

– Sample size: Females n=999; Employed females n=820; Females receiving government benefits n=235

News Credits- ZAWYA BY LSEG

Birkenstock (BIRK.N) beat third-quarter profit expectations on Thursday on strong demand for its clogs and shoes at full price, and said it was well placed to manage the hit from a 15% U.S. tariff on European imports.

Shares of the German sandal maker fell 2.7% in morning trading after company executives warned that a weaker dollar would hurt its revenue and margins in the fourth quarter.

The company, however, stuck to its annual forecasts for margin and revenue on strong demand despite price hikes to offset tariff impact.

Its suede leather closed-toe Boston clogs, which sell at $179.95 online, have seen firm demand from wealthy shoppers, boosting its gross margin by 100 basis points to 60.5%.

Birkenstock makes 95% of its shoes at its factories in Germany and expects to manage the fallout of U.S. tariffs through price increases, cost discipline and inventory management, CEO Oliver Reichert said.

“We saw no pushback or cancellations following the July 1 price increases implemented in response to tariffs,” he said on a post-earnings call.

Strong full-price sales have also boosted performance at high-end peers such as On Holding and Deckers Outdoor (DECK.N) which owns Hoka and Ugg.

Birkenstock’s sales in Americas grew 16% after accounting for currency fluctuations, compared with 20% growth in the previous three months.

Its wholesale channel sales rose 15% on solid demand from U.S. retailers, outpacing a 9% rise in direct-to-consumer sales globally.

“Investors are now properly calibrated to focus on total growth figures and even more important, the “luxury” margins that are best in class,” Jefferies analyst Randal Konik wrote in a note.

Quarterly revenue of 635 million euros ($741.49 million) narrowly missing expectations of 636.74 million euros, according to data compiled by LSEG. On an adjusted basis, it earned 62 euro cents per share, above the estimate of 60 euro cents.

Birkenstock maintained fiscal 2025 revenue growth at the high-end of its forecast range of 15% to 17%, while its expectations for adjusted EBITDA margin – a measure of profitability – was unchanged at 31.3% to 31.8%.

($1 = 0.8564 euros)

Author Credits- Savyata Mishra
Reuters

The world’s biggest retailer of Ikea goods said on Wednesday CEO Jesper Brodin was stepping down after eight years, to be succeeded by Spaniard Juvencio Maeztu, the first non-Swede to lead the group.

Maeztu takes the top job at Ingka Group as the Swedish retailer grapples with US tariffs, wars and geopolitical tensions that risk disrupting its operations spanning 31 countries from Europe to China, India and the US.

Brodin, CEO since 2017, said his decision to step down was not easy, but that it was the right time to do so. Maeztu is to start in the new role by November 5, with Brodin staying at the company until the end of February to ease the transition.

Deputy CEO and chief financial officer since 2018, Maeztu, 57, started at Ikea in 2001 as manager of the Alcorcon store in Madrid, later managing the Wembley store in London, before a six-year stint as CEO of Ikea India.

“We’ve been riding through quite some storms together – pandemic, geopolitical issues, war, etcetera,” Brodin, 56, told Reuters. “So in a way I feel proud of the things we have achieved but also super confident that the Ikea house is in good order and we’ll be able to take off for the future with Juvencio.”

Under Brodin, Ingka Group invested heavily to improve online shopping for Ikea, driving the retailer’s online sales up. Ingka also set new emissions reduction targets and reported in January that emissions fell by 30.1% from its 2016 baseline.

Brodin said the appointment of Maeztu, who grew up in Cadiz and does not speak Swedish, shows Ikea’s global culture works.
The incoming CEO is setting off on a “listening tour” of its big blue stores around the world, starting in Asia, as he builds his strategy to grow the company which last year reported weaker net profit and revenue after slashing prices.

“I am fully determined to make Ikea grow and to really be relevant for many millions more consumers around the world,” Maeztu told Reuters. He has said tariffs make it harder for Ikea to keep prices low.

Privately-held Ingka Group will report sales figures in mid-October for its financial year ending August 31. As the biggest franchisee, Ingka sells Ikea products manufactured by brand owner and franchiser Inter Ikea.

News Credits- FASHION NETWORK

Abu Dhabi-listed Lulu Retail Holdings has posted a modest profit increase for the second quarter of 2025, with net earnings reaching $57 million, up by 2% year-on-year. The retail giant’s revenue for the quarter rose by nearly 5%, hitting $2 billion. This growth was primarily attributed to like-for-like sales growth of 2.1%, reflecting strong consumer demand across its diverse range of products.

In the first half of the year, Lulu Retail Holdings’ performance remained robust, with a 9% rise in net profit to $127 million. The company’s overall revenue surged by 5.9% to $4.1 billion, bolstered by a combination of new store openings and sustained sales across its existing locations. The results underscore the company’s resilience in an increasingly competitive retail landscape, driven by strategic expansion and ongoing investment in its store network.

Lulu Retail Holdings, one of the largest hypermarket chains in the Middle East, continues to capitalise on its expanding footprint in both the UAE and other regional markets. The retailer’s ability to maintain steady revenue growth, even amid fluctuating consumer behaviour and economic challenges, is attributed to its diversified product offerings and operational efficiencies. Key drivers of the company’s success include its focus on enhancing its digital platforms and expanding its range of private-label products, which offer higher margins compared to third-party brands.

The group’s commitment to digital transformation has become particularly evident in its e-commerce strategy. Lulu has made significant strides in improving its online presence, responding to the growing demand for online shopping in the region. The company’s e-commerce sales have been a major contributor to its overall growth, with new initiatives aimed at improving delivery times and offering a wider selection of products online. This move aligns with broader regional trends, where consumers are increasingly shifting towards online shopping for convenience and competitive pricing.

Store expansion has also been a key component of Lulu’s strategy, contributing to its healthy performance. Over the past year, Lulu Retail Holdings has continued to increase its presence in key regional markets such as Saudi Arabia, Qatar, and Oman. The opening of new hypermarkets and supermarkets has allowed the company to tap into growing urban populations and emerging retail hubs in the Middle East. These new locations have not only driven revenue growth but have also enhanced the company’s visibility and strengthened its market share in these competitive retail environments.

Despite the global economic uncertainty and rising inflationary pressures, Lulu Retail Holdings has managed to maintain strong sales figures by focusing on its core customer base while diversifying its offerings. In addition to its food and grocery segments, the company has expanded its non-food categories, including electronics, fashion, and home goods, attracting a broader demographic. The retailer’s ability to adapt to changing consumer preferences, such as the increasing demand for health and wellness products, has also supported its continued growth.

Lulu’s performance is also reflective of the broader trends in the retail industry within the region. As more consumers opt for quality and convenience, hypermarket chains like Lulu are well-positioned to capture a larger share of the market. The company’s large-scale operations, combined with its ability to offer competitive prices and high-quality products, are key factors that have helped it to navigate the challenges posed by shifting economic conditions.

News Credits- msn