Marka attributes 68% plunge in revenue to store closures

Dh200m wiped from books as retailer also posts a 44% increase in net losses

Marka continued its dismal run of results yesterday, with revenues for 2017 plummeting by nearly 68 per cent, and net losses increasing by 44 per cent.

The Dubai Financial Market-listed retailer saw Dh200 million in revenue wiped from its books, as its income dropped from Dh294 million in 2016 to Dh94 million last year.

Marka blamed this loss of revenue on the closure of “various non-profitable stores”.

Compounding the company’s poor form, Marka saw net losses for 2017 increase to Dh218 million, up from Dh150 million in 2016.

Other key metrics, such as shareholder equity, total assets, and losses per share, were all negative when compared with the previous year.

Cost cutting

Last year, Marka embarked on an aggressive cost cutting programme.

In August 2017, Khalid Jasem Bin Kalban, Marka’s chairman, said in a statement: “Over the past 12 months, Marka has faced unprecedented changes in the region’s retail markets, driven by changing consumer behaviour and geopolitical influences.”

Marka had rapidly expanded in previous years against the backdrop of a weakening consumer segment, exacerbated by a low oil price environment, and a drop in tourist spending.

Consequently, the retailer has failed to record a profitable quarter since it was listed on the stock market in 2014.