Lulu Retail Holdings posted record revenue of $7.9 billion (Dh29 billion) for the financial year 2025, marking a 4.1 per cent year-on-year increase, as store expansion and rapid e-commerce growth strengthened its position across the Gulf. Net profit reached $205 million (Dh753 million), slightly exceeding earlier guidance issued in the third quarter.
The pan-GCC retailer, which operates across the UAE, Saudi Arabia, Kuwait and Bahrain, opened 20 new stores during 2025, taking its total network to 267 outlets. The company confirmed plans to launch 50 additional stores between 2026 and 2028 under its ongoing regional expansion strategy.
Dividend Confidence Amid Growth
The company proposed a second-half dividend of 3.5 fils per share, bringing total dividend payouts for 2025 to 7 fils per share, equivalent to $197 million (Dh724 million). The move signals management’s confidence in cash generation and long-term growth prospects.
Saifee Rupawala, Chief Executive Officer of Lulu Retail Holdings, said the company’s diversified portfolio and expanding digital presence position it well for disciplined growth across the GCC.
“Our existing portfolio and growing e-commerce presence position us to continue our disciplined expansion strategy across the GCC,” Rupawala said.
E-Commerce Gains Momentum
Online sales surged 38.6 per cent year-on-year, with fourth-quarter growth accelerating to 51.8 per cent. E-commerce now accounts for 7.3 per cent of total retail sales, supported by the retailer’s proprietary digital platform, which is expanding at nearly twice the pace of aggregator channels.
The company also launched a Digital and Omnichannel Transformation Office in Dubai in 2025, underscoring its shift toward technology-led retail operations and customer engagement.
Retail analysts note that the strong digital performance reflects broader shifts in consumer behaviour across the Gulf, where convenience, home delivery and app-based purchasing are becoming embedded in daily shopping routines.
Private Labels and Loyalty Drive Margins
Private label products accounted for 29.8 per cent of total sales during the year, helping to strengthen margins and enhance pricing competitiveness. Meanwhile, the company’s “Happiness” loyalty programme expanded to 8.4 million members, with more than two-thirds of total sales now linked to registered loyalty customers.
The increased focus on in-house brands and customer retention strategies has helped the retailer manage pricing pressures while maintaining steady revenue growth.
Balance Sheet Strength
Net debt eased slightly to $2.5 billion (Dh9.18 billion), providing financial flexibility to fund future expansion while sustaining shareholder returns.
“Our high cash generation and confidence in the outlook allow us to propose a H2 dividend of 3.5 fils per share, taking the total to 7 fils per share for 2025. This offers an attractive yield to shareholders who we thank for their continued support,” Rupawala added.
With expansion plans on track and digital channels accelerating, Lulu Retail Holdings enters 2026 with strengthened fundamentals and a broader regional footprint, positioning itself to capture continued growth in the GCC retail sector.
