Fawaz Abdulaziz Alhokair & Co. “Cenomi Retail” (4240) has entered into merger negotiations with a global fashion company. The Saudi company describes the deal as a “potentially significant transaction.”
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Cenomi Retail revealed Monday morning that the ongoing negotiations with one of the world’s leading fashion retail companies involve the merger of several fashion brand agencies.
So what
The move by the Kingdom’s leading retail firm aligns with its strategy to expand its foothold within the rapidly growing fashion industry both locally and globally.
This comes at a time when the domestic fashion industry is undergoing a rapid transformation, driven by “Vision 2030,” which aims to diversify the Saudi economy and strengthen non-oil sectors.
Some context
The company’s net profit plummeted approximately 50.5% YoY during the second quarter of this year to reach SAR 84.1 million.
This was due to a 12% decline in quarterly revenues, which amounted to nearly SAR 1.3 billion.
The firm’s brand sale program, announced in Q1 2024, as well as ongoing regional geopolitical tensions also drove the company’s earnings down during the period.
