Fawaz Alhokair turns to loss of SAR 535.6 mln in Q1 2020/21

Fawaz Abdulaziz Alhokair Co. reported a net consolidated loss after Zakat and tax of SAR 535.6million in the first quarter ending June 30, 2020, compared to a net profit of SAR 224.9 million in the year-earlier period.

The net loss was attributed to 67.4% decline in revenue, driven primarily by the temporary closure of the company’s retail units amid COVID-19 pandemic.

However, selling, general and administrative expenses declined 1.3% year-on-year (YoY) to SAR 91.5 million in Q1-FY2021, thanks to increased operational efficiencies. In addition, the company recorded one-off impairments of SAR 63.2 million related to certain investments in foreign markets and fixed assets.

The fashion retailer sustained losses in Q1-FY2021, compared to a net profit of SAR 887.6 million in Q4-FY2020, as revenue declined by 47.9% due to the government’s precautionary measures to curb the spread of the virus outbreak.