17 Hrs
Source:
الاقتصادية
Competition and marketing drove Nice One's quarterly loss up over 1,448%
Nice One Electronic Marketing's results show a significant decline in its financial performance in the second quarter of 2026, with net losses increasing by over 1448%. The company incurred a loss of 20 million riyals compared to 1.3 million riyals in the same period last year. This is attributed to an increase in provisions for slow-moving inventory and higher indirect costs related to expansion in retail stores, which led to a decrease in gross profit and its margin. Additionally, the company increased its marketing campaign spending by 33% to maintain its market share amid intensifying competition, with selling and marketing expenses rising by 19.2% and administrative expenses by 33.14%. Despite a 2% drop in revenues to 188 million riyals, customer visits declined by 15.6%, although store expansion helped boost their contribution to 4.7% of total revenue. Nice One, established in 2017 with a market value of 1.4 billion riyals, is struggling with rising costs and shrinking profits amid fierce competition in the Kingdom's e-commerce market.
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