Fall in sales of smart phones and other electronics saw profit drop to $46.4m in the three months to March 31
Jarir Marketing, one of Saudi Arabia's largest retailers by market value, posted a 29.5 percent fall in first-quarter net profit on Sunday, below analysts' estimates, as sales fell, especially of smart phones and other electronics.
It made a net profit of 174.1 million riyals ($46.4 million)in the three months to Mar. 31, down from 247 million riyals in the same period a year earlier, it said in a bourse statement.
Five analysts polled by Reuters had on average forecast Jarir would make a quarterly net profit of 195.3 million riyals.
The company said the earnings decrease was partly due to lower sales of most goods, especially of electronics, smart phones, computers and computer supplies.
It noted that during the same quarter last year, Saudi King Salman ordered the payment of two months' extra salary and pensions to government employees and retirees, boosting the firm's quarterly sales to a record level.
Turnover in the first quarter was 1.42 billion riyals, down 25.8 percent on the same three months of 2015.
Jarir warned on Mar. 8 that its sales would plunge by as much as 30 percent in the first quarter of this year, the result of a decline in consumer spending as low oil prices weakened the kingdom's economy.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.