EL7.AI
StocksMedium•6 November 2026•
3 min read

LuLu Retail Revenue Rises 2% to $1.935 Billion in Third Quarter

Key Facts

1Third-quarter revenue rose 2% to $1.935 billion, compared with $1.896 billion in the third quarter of 2025.
2Net income was $29 million, gross profit was $444 million and EBITDA was $175 million.
3Like-for-like sales fell 1.9%, new stores contributed $43 million and wholesale activity grew 24%.
4Gross margin declined to 22.9% from 23.7%, and net income fell 19.1% year on year.

LuLu Retail revenue rose 2% year on year to $1.935 billion in the third quarter of 2026, compared with $1.896 billion in the corresponding period of 2025, according to the company's results presentation. The company said net income was $29 million, while gross profit reached $444 million and EBITDA was $175 million. Revenue growth came as like-for-like sales fell 1.9%, highlighting the role of new store openings and wholesale activity in supporting the total. New stores contributed $43 million to quarterly revenue, while wholesale activity grew 24%.

Revenue growth was not matched by improved profitability: net income fell 19.1% year on year to $29 million. Gross margin declined to 22.9%, from 23.7% in the third quarter of 2025. The company attributed margin pressure to higher input costs and limited ability to pass them on through prices. Gross profit was $444 million, while EBITDA stood at $175 million. These figures reflect a divergence between revenue expansion and pressure on margins and net profit during the quarter.

Revenue trends varied across the group's markets: the UAE, Kuwait and Oman posted growth, while revenue declined in Saudi Arabia and Qatar, according to the results presentation. By product category, food revenue rose year on year in every month of the quarter. Non-food sales, by contrast, continued to be affected by weak consumer confidence, despite an improvement in their performance trend compared with the second quarter. The company said trading conditions continued to normalize, describing quarterly revenue growth as "encouraging." This divergence puts the performance of food and the growing markets against continued weakness in non-food demand and declines in two markets.

The company's results showed that revenue growth did not rely on like-for-like sales alone: new store openings added $43 million during the quarter, alongside 24% growth in wholesale activity. LuLu Retail had 288 stores across the six GCC countries as of September 30, 2026, spanning hypermarkets, express stores and mini markets. This network provides context for the contribution of expansion to sales, while the decline in like-for-like sales shows that existing stores performed less strongly than total revenue. The results presentation did not specify, in the available information, the contribution of each market or store format to quarterly growth.

Capital expenditure totaled $78 million in the first nine months of 2026, equivalent to 1.3% of sales. In the corresponding period of 2025, spending was $83 million, or 1.4% of sales. This spending places the group's expansion in the context of its investment during the year, alongside the addition of stores that contributed to third-quarter revenue. CEO Saifee Rupawala said quarterly revenue growth gave the company optimism as it entered the fourth quarter and the coming year. The company scheduled a call with investors and analysts on the results for November 6, 2026, at 9:30 a.m. UAE time.