UAE’s Lulu Retail hits record $7.9b revenue in 2025, to open 50 GCC stores

Lulu Retail Holdings, the largest pan-GCC full-line retailer, posted record revenue of $7.9 billion (Dh29 billion) for 2025, up 4.1 per cent year-on-year, driven by store expansion and strong e-commerce growth. Net profit reached $205 million (Dh753 million), slightly exceeding guidance from last year’s third quarter.

The company proposed a second-half dividend of 3.5 fils per share, bringing total 2025 payouts to 7 fils per share ($197 million or Dh724 million), reflecting confidence in its cash generation and long-term growth prospects.

Lulu added 20 stores in 2025, raising its total network to 267 outlets across the UAE, Saudi Arabia, Kuwait, and Bahrain. The retailer plans to open 50 more stores between 2026 and 2028 as part of its disciplined GCC growth strategy.

“Our existing portfolio and growing e-commerce presence positions us to continue our disciplined expansion strategy across the GCC,” Saifee Rupawala, CEO of Lulu Retail, said.

Online sales jumped 38.6 per cent year-on-year, accelerating to 51.8 per cent growth in Q4. Online penetration reached 7.3 per cent of total retail sales, driven by Lulu’s proprietary digital platform, which is growing nearly twice as fast as aggregator channels.

Private label products now make up 29.8 per cent of total sales, supporting margins. The Happiness loyalty programme expanded to 8.4 million members, with over two-thirds of sales linked to loyalty customers.

Net debt eased slightly to $2.5 billion (Dh9.18 billion), leaving Lulu well-positioned for future expansion and shareholder returns.

“Our high cash generation and confidence in the outlook allows 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.