11/05/2026 10:02 AST
Cenomi Retail, a leading franchise retailer in Saudi Arabia, reported a revenue growth of 2.4% year-on-year (YoY) in Q1-2026, to SAR1.36 billion ($360.98 million).
The growth was underpinned by double-digit expansion in international markets, continued momentum in the online channel, and a stronger contribution from Electronics, Beauty, Sports and Lifestyle categories, the company said.
These segments, which have long formed part of the group's portfolio, are now delivering meaningfully stronger performance following focused investment and commercial prioritisation. Collectively, they achieved 20.8% LFL growth during the quarter, reflecting the tangible impact of the Group's activation strategy on revenue quality and mix, it said.
Gross profit declined by 14.6% YoY to SAR128.6 million, with margin at 9.4% versus 11.3% in Q1-25, primarily due to seasonal promotions, tighter logistics conditions that affected shipment volumes and fulfilment flexibility during the period of geopolitical tension, and a delayed spring that weighed on the spring/summer collection as customers shifted toward discounted winter items, it said.
Operating profit declined by 45.1% YoY to SAR45.8 million, primarily due to lower gross profitability, higher SG&A expenses driven mainly by increased marketing spending on the Ramadan campaign, slight increase in shipping and logistics costs, and lower other operating income.
The group reported a net loss of SAR47.3 million, compared to a net profit of SAR1.8 million in Q1-25, reflecting temporary lower profitability, higher finance costs, and the absence of the SAR21.8 million divestment gain recorded in the prior-year.
Trading conditions in Saudi Arabia were shaped by a softer-than-usual Ramadan season and logistics-related supply chain pressures arising from regional geopolitical developments during the quarter. End-of-season promotional activity helped mitigate part of the pressure on domestic trading. Despite these dynamics, store productivity improved materially year-on-year, while a broader set of brands contributed more meaningfully to domestic revenue, reflecting stronger brand activation and wider consumer reach across the portfolio. Management remains focused on disciplined execution and the progressive improvement of operating and financial performance across all markets and channels.
Salim Fakhouri, Chief Executive Officer at Cenomi Retail, commented: "Q1 2026 reflects a resilient start to the year. In a quarter shaped by a softer Ramadan season and regional geopolitical pressures, we delivered growth supported by a more diversified revenue base, with strong momentum in international markets, continued progress in e-commerce, and a broader contribution from Electronics, Beauty, Sports, Lifestyle and Fashion across the Kingdom.
"ZARA and other Inditex brands delivered strong international growth of 19.8% LFL, even as KSA performance was temporarily impacted by regional geopolitical conditions. We also saw meaningful improvement in store productivity year-on-year, reflecting the benefits of better execution, stronger brand activation and more focused capital allocation. We remain firmly focused on operational discipline, stronger store economics and the progressive improvement of profitability across the business," he said.
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