Restructuring Dubai retailer says strong progress being made on reform programme
Marka revenues fall but loss narrows
Marka, the retailer that started restructuring its business earlier this year after failing to turn a profit since its 2014 listing, reported total revenues of Dh23 million for the three months ending September 30, down from Dh25m in the second quarter.
The company posted a net loss of Dh22m for the third quarter, deeper than the Dh3m loss posted in the same period last year, but an improvement on the Dh126m lost for the second quarter of 2017.
Marka, which listed on the Dubai stock exchange in September 2014, expanded rapidly into retail, food and beverage and children’s entertainment outlets, but has been caught out by falling disposable income levels in the UAE.
Marka said the narrowing of quarterly losses reflected the progress the company is making on its ongoing cost control programme – with a reduction of 75 per cent of its general expenses compared with the second quarter - as well as operational changes that are moving the company towards long-term financial improvements.
“The company is maintaining a strict cost control programme and making strong operations improvements," said the Marka chairman Khalid bin Kalban. "With the steady progresses made across all brands, we are in a better position to envisage the future with confidence."
The company said last month it had "taken steps to sell or close the vast majority of fashion and sport brands whilst also undertaking a significant reduction in overhead costs".
Marka shareholders in May voted to sell the company’s 60 per cent stake in Dubai-based children’s indoor play area operator Cheeky Monkeys.