Slow economy leads seventh quarterly loss in a row for Marka

Marka posted a second-quarter loss – its seventh in a row – amid a challenging retail economy and a slow month during Ramadan, the Dubai-listed retail company said.

Marka widened its losses to Dh18.7 million in the second quarter, compared with a Dh2.1m loss a year ago, it said.

Despite frequent assurances to investors that the company expected to become profitable this year, Marka has not yet registered a single quarterly profit since the company was floated about two years ago.

The UAE retail sector has been hit by a strong US dollar, to which the dirham is pegged, making purchases more expensive for many visitors.

Marka’s losses for the first quarter this year stood at Dh18.1m.

“Our efforts are seeing fruition in building profitable trading platforms for 2017 and beyond,” said Khaled Almheiri, the company’s vice chairman and managing director.

He said the results reflected a “challenging” retail economy and slow sales during Ramadan.

Marka, which operates more than 50 outlets across its portfolio of hospitality, sports and fashion and beauty brands, said second-quarter revenue reached Dh89.5m, up 18.2 per cent compared with the second quarter last year.

The company said it planned to open 19 new outlets this year, including four Reem Al Bawadi restaurants and three Cheeky Monkeys Playland and Sweet Surprises outlets in the UAE.


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