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Riyadh, KSA – November 5, 2019: L’azurde Company for Jewelry (“L’azurde”, “the Company”), the largest gold and jewelry designer, manufacturer, distributor and retailer in the Middle East, announced today its financial results for the third quarter of 2019, reporting strong performance in operating revenues for the sixth quarter in a row.
The Company’s operating revenues for the nine months period ending 30 September 2019 continued to increase, reflecting a gross profit of SAR 242.3 million.
L’azurde revenues continued to improve for the sixth quarter in a row, with Egypt retail revenues rising by 45.2% compared to the same period of 2018; the increase largely reflecting the substantial sales growth in the existing shops and the successful opening of four new mono-brand retail shops. KSA retail channel revenues also recorded a significant increase of 84% for the period, thanks to the consolidation of the revenues of the newly acquired TOUS franchisee and growth at L’azurde points of sale.
“We are gaining traction in growing the retail segment of affordable luxury jewelry through our TOUS franchisee acquisition, which attracts a higher return on investment,” said Sélim Chidiac, CEO of L’azurde. Optimizing and growing the TOUS franchisee business in KSA is indeed a key strategic initiative for the Company to further improve its operations in the Kingdom.
The Company is also taking solid measures to increase its market share going forward, in face of higher and more volatile gold prices that have led to a temporary delay in buying decisions by retailers and a subsequent decrease in wholesale revenues during Q3 2019.
“We have witnessed frequent gold price fluctuations in our home market of KSA during the past quarter, which led many of our retailers to delay their buying decisions”, said Chidiac. “We are taking the right measures to increase our market share while undertaking company restructuring and costs reduction to enhance our margins and profitability.”
L’azurde will in fact continue to focus on the execution of its strategic initiatives aimed at reducing working capital, improving productivity, and further developing the Company’s profitable retail business in both KSA and Egypt, in addition to growing the retail segment of affordable luxury jewelry.
In that vein, L’azurde is introducing Miss L’, a new line of trendy jewelry pieces targeting a younger generation of customers. “We are launching a very promising L’azurde Miss L’ fashion line of Gold jewelry at affordable prices”, said Chidiac. “Sold by piece across malls and third party retailers, Miss L’ wholesale business will be of great added value to L’azurde.”
For more L’azurde news, please visit the Company’s website (https://www.lazurde.com).
Since it was founded in 1980, L’azurde has excelled at the art of jewelry design. Today, it is the largest gold and jewelry designer, manufacturer, and distributor in the MENA region, and the fourth largest gold manufacturer in the world, selling over one million pieces of jewelry per annum.
L’azurde has over 2,000 employees and produces more than 4,000 different jewelry models every year in 21-karat and 18-karat gold as well as classic and fashion diamond jewelry. L’azurde’s international design team uses the latest CAD/CAM technology to produce the most intricate jewelry designs. The pieces are manufactured at the Company’s factories in Saudi Arabia and Egypt, using advanced, high-tech equipment including 3D printing, micro setting, laser cutting, and other modern technologies. The jewelry is distributed to more than 1,800 retailers across the GCC and MENA regions and also exported to more than 28 countries outside the region. L’azurde also has its own network of 21 mono-brand retail shops at top malls in KSA, Egypt and UAE, where it is focused on the sale of diamond and gold jewelry.
In line with its strategy to become a ‘house of brands’, L’azurde finalized in October 2018 the acquisition of the TOUS franchisee in KSA. TOUS is an international lifestyle brand focused on affordable luxury that has been in business for almost 100 years and with more than 620 stores in over 53 countries. As a franchisor, TOUS designs, manufactures and sells jewelry, bags and accessories for women and men. Their offering covers a wide range of products including fine jewelry with diamond, gold and silver, its core business, and handbags, fragrances and accessories. TOUS has been present in KSA since 2008 with a network today of 26 stores across the Kingdom.