Abu Dhabi:Lulu Retail has reported a strong first-half performance for 2025, with revenue climbing to $4.1 billion, up 5.9% year-on-year (YoY), and net profit rising 9.1% YoY to $127.0 million, reflecting solid operational execution and strategic growth across key segments.The company has declared an interim dividend of $98.4 million (3.5 fils per share), maintaining a healthy 78% payout ratio aligned with its IPO dividend policy.
Growth Fueled by Private Label and Digital Channels
Performance in H1 2025 was supported by sustained growth in Lulu’s private label and e-commerce businesses. Private label sales grew 3.5% YoY, contributing 29.7% of total retail revenue. Meanwhile, e-commerce sales surged 43.4% YoY to $108 million, accounting for 5.6% of total retail revenue. Online customer count rose by an impressive 45.4% YoY, underscoring Lulu’s growing digital footprint.Gross profit for the period rose 6.5% YoY to $468 million, and EBITDA reached $418 million, up 7.0% YoY, with Q2 alone contributing $204 million. EBITDA margins in Q2 improved by 28 basis points, highlighting ongoing efficiency gains.
Strong Regional Momentum and Expansion Plans
Lulu Retail opened seven new stores in H1 and four more in July, bringing the total store count to 259. The group remains on track to meet its target of 20 new store openings in 2025, reinforcing its commitment to regional expansion.
Key regional performance highlights include:
UAE: Lulu’s largest market posted a 9.4% YoY increase in Q2 revenue, led by high demand for fresh food and strength in omnichannel retailing.
Saudi Arabia: Revenue rose 3.8% YoY, bolstered by strong performance in electronics and store rollouts.
Kuwait: Delivered consistent growth with a 4.9% YoY revenue increase.
Additionally, the group’s Happiness loyalty program attracted 1 million new members in Q2, bringing total membership to 7.3 million, reinforcing Lulu’s customer engagement strategy.
CEO Commentary
“Our steady and resilient H1 2025 performance is a testament to our well-established growth pillars, enabling record sales and margin improvements,” said Saifee Rupawala, CEO of Lulu Retail. “We expect our growth momentum to persist as we focus on expanding our store network, launching new outlets, enhancing operational efficiency, and unlocking further potential through private label and e-commerce offerings.”
