- Declares interim dividend of $98.mn and plans to open 20 more stores this year.
ABU DHABI: Lulu Retail’s first half of 2025 reads like a business adventure filled with milestones, surprises, and the strategic moves of a retail giant hungry for innovation.
It all began at the crack of this year, with Lulu setting out a clear vision: capture new markets, double down on their private label range, and make e-commerce a greater part of their story. By mid-year, the results were in—and the numbers told a tale worth celebrating.
Net profit leaped by 9.1 per cent year on year, hitting a record $127 million. Revenues climbed steadily, reaching $4.1 billion, up 5.9 per cent from the previous year.
Even more promising: like-for-like sales grew by 3.8 per cent, showing that shoppers returned not just for novelty, but out of true loyalty to Lulu’s core categories.
The second quarter kept the momentum alive with revenues passing $2 billion, a 4.6 per cent YoY surge. Strong sales performance revealed a company flexing its strengths—private label products and online channels became the heroes of this retail narrative.
Financial highlights
Lulu’s private label line expanded by 3.5 per cent, and now accounts for nearly 30 per cent of all retail revenue, turning every house brand into a growth engine. Meanwhile, the e-commerce story was nothing short of dramatic: online sales skyrocketed 43.4 per cent to $108 million in the second quarter, representing 5.6 per cent of Lulu’s retail revenue and attracting almost half again as many digital shoppers as before.
Profitability strengthened across the board. Gross profit grew by 6.5 per cent to $468 million, and EBITDA jumped an impressive 7.6 per cent in the second quarter to $204 million, with the first half’s EBITDA tally reaching an enviable $418 million.
These numbers were more than financial highlights—they were a reflection of operational efficiency, customer trust, and a business model that adapts quickly.
The rewards weren’t just for the company’s leadership. Lulu declared an interim dividend of $98.4 million (3.5 fils per share), distributing a healthy 78 per cent of first-half profits to faithful shareholders. This was more than just a number; it was Lulu’s way of sticking to its IPO dividend promises and sharing success.
Eyes greater potential through innovation
CEO Saifee Rupawala played narrator to this saga, crediting Lulu’s results to tried-and-true foundations—steady pillars like expanding the store network, rolling out fresh locations, and leveraging the power of its homegrown brands and robust digital strategies.
“We’ve built something remarkably resilient,” said Rupawala, “and our focus is crystal clear: more stores, smarter operations, and unlocking even greater potential through innovation.”
The geographic chapter ended with a flourish: the UAE, Lulu’s largest market, delivered a spectacular 9.4 per cent second-quarter revenue jump, thanks to unrelenting demand for fresh foods and the magic of a seamless omnichannel experience.
Other key markets followed suit—Saudi revenue inched up 3.8 per cent, while Kuwait posted a solid 4.9 per cent gain.
With half the year behind them, Lulu Retail stands ready for its next chapter: more expansion, more digital breakthroughs, and—if the first half is any clue—even more milestones to celebrate before the year draws to a close.
