Fawaz Alhokair CEO says inventory issues ‘now behind us’; focus on revenue, profit margin growth

Marwan Moukarzel, CEO of Fawaz Abdulaziz Alhokair Co.

Fawaz Abdulaziz Alhokair Co. overcame the legacy inventory, Chief Executive Officer (CEO) Marwan Moukarzel, said in the company’s earnings release.

“With legacy inventory issues now behind us, this year will see us focus on accelerating top-line growth and improving our margins. As announced at year-end, we are also taking actions to further strengthen the company’s financial position to enable long-term sustainable growth,” Moukarzel explained.

The company returned to profitability following five consecutive quarters of net losses. Top-line recovery was significant, with sales figures returning to pre-pandemic levels as COVID-19 related restrictions lifted across markets and supported by Ramadan seasonal sales.

Moreover, the company has made good progress on its operational upgrade strategy to drive business excellence and optimize portfolio, while maintaining profitability.

“Our commitment to digitalization is stronger than ever and we made significant progress in migrating brands to Vogacloset, with 29 additions during the first quarter, while the plan is to continue diversifying the brand offering on the platform,” Moukarzel added.

Alhokair continues to expand its online presence in Saudi Arabia and in the international markets, where it launched two new monobrand platforms during the quarter, which will support growth in online sales across markets, he concluded.

The Saudi fashion retailer turned to a consolidated net profit after Zakat and tax of SAR 45.7 million for the first quarter ended June 30, 2021, against a net loss of SAR 535.6 million in the year-earlier period, Argaam reported.