L’azurde, a Saudi-based jewellery manufacturer and retailer operating in the region, reported significant growth in the first half of the year, having recorded SAR268.8 million in revenue.
Gross profit was valued at SAR172.9 million, marking an eight per cent increase from the first half of last year.
Over the same period, net profit rose by 22 per cent, ultimately valuing SAR22.2 million.
Net profit also increased from the second quarter of last year to that of this year, topping SAR8.5 million.
Commercial and strategic initiatives implemented in 2020 were key to the growth recorded this year, said L’azurde.
Measures included selling affordable jewellery at higher profit margins and reducing working capital to decrease operating costs.
The brand’s wholesale revenue in Saudi Arabia grew by 12.6 per cent from the first half of last year to that of this year, thanks to local souks purchasing gold by weight.
Over the same period, the brand recorded a five per cent increase in operating revenue in Egypt.
Across the greater region, operating revenue was valued at SAR117.1 million in the second quarter of this year.
L’azurde also attributed its business growth to increased revenue within existing stores, openings of new stores and more purchases on e-commerce platforms.
The brand’s e-commerce sales accounted for 5.4 per cent of its total revenue and 13.2 per cent of sales across its selling points.
In the first half of this year, L’azurde’s e-commerce business made SAR14.6 million, marking a 25.48 per cent increase from its revenue of SAR11.3 in the first half of last year.
The brand expects growth to continue in the coming months, amid plans to strengthen its omnichannel operations and offer customers new selling points and a more expansive product portfolio, said Selim Chidiac, CEO of L’azurde.
Last year, the Middle East’s luxury market was valued at $9.7 billion, a 23 per cent increase from its $7.9 billion value in 2019 and a 24.6 per cent increase from its $6.8 billion value in 2020, according to the Chalhoub Group’s GCC Personal Luxury in 2021: A Story of Early Recovery and Growth.
The high-end jewellery market was valued at $3.9 billion last year, a 16 per cent growth from 2019, after recording a 19 per cent decline in 2020 amid the Covid-19 pandemic.
The report estimates the jewellery market will grow eight per cent by the end of next year.
The luxury goods market is estimated to reach $11 billion by the end of next year, rising at a compound annual growth rate of seven per cent.
