Saudi Arabia posts third quarterly loss due to rising competition
NICE ONE, a Saudi company specializing in online retail of cosmetics and personal care products, reported a net loss of approximately 20 million SAR for the second quarter of 2026. This marks the third consecutive quarterly loss since its market listing. The escalation in losses was driven by increased marketing expenses and higher inventory provisions, despite actual sales remaining relatively stable thanks to the expansion of physical stores, which helped offset revenue declines. The contribution of physical stores to total sales rose to 4.7%. However, operating costs and marketing expenses surged significantly, with the company spending 41.6 million SAR on marketing while generating gross profits of only 41.7 million SAR. This resulted in inability to cover costs and an increase in losses, along with inventory provisions rising to 8.8 million SAR. The results indicate that the losses are not seasonal but are due to rising fixed costs, amidst continuing declines in customer visits (a 15.6% decrease) and expanding administrative expenses. These factors are exerting pressure on profit margins and pose risks to sustainable growth and future profitability.
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