Lazurde CEO says e-commerce accounts for 9% of retail revenue, committed to turn profitable in 2021

Selim Chidiac, CEO of Lazurde Company for Jewelry

Lazurde Company for Jewelry’s e-commerce business reached 9% of retail revenue after being launched just a year ago, chief executive officer (CEO) Selim Chidiac told Argaam in an exclusive.

The e-commerce growth came due to solid investments in technology, systems, a top team, high Lazurde brand equity and awareness levels.

“We are also investing in training staff of our brick-and-mortar stores to fully embrace e-commerce, and drive sales of stores and e-commerce at the same time,” Chidiac noted.

Commenting on the company’s Q1 2021 results, the CEO said Lazurde witnessed a very promising mix of revenues and lower operating expenses despite revenue growth, as well as the lowest ever level of gold working capital that led to a significant reduction of financing costs by 22%.

Lazurde’s revenue grew in Saudi Arabia and Egypt during Q1 2021. In total, the Kingdom and Egypt represented 45% and 55% of total revenue, respectively.

“We are optimistic to pursue the company’s turnaround and build on our momentum to secure a solid performance over Q2 and the coming quarters, as long as we don’t face any major external event outside our control,” Chidiac added.

“The management and the board of directors are committed and confident to return the company to profitability in 2021 and growing profits over the coming years to reach previous years’ profits levels,” Chidiac affirmed.

Moreover, the company plans to use proceeds from its planned capital increase to grow revenues and enhance profitability. It will invest in growing Miss L’, expanding L’azurde Instyle, opening retail shops, reinforce e-commerce structure and technology.

“We will also reimburse some of our banks facilities to reduce financing costs,” Chidiac noted.

Lazurde has in total 70 retail points of sales across Saudi Arabia and Egypt. It plans to open around six new locations in 2021 and close two locations to adapt the network to the market evolution with the new mall openings.

“The company is very cautious and critical in deciding the opening of new stores as we remain very selective about the choice of locations and commercial terms,” the CEO stated.

Furthermore, Lazurde’s new affordable fashion jewelry business is growing fast in a very promising segment of the jewelry industry.

“We entered this segment recently and started gaining share and growing rapidly behind investments in products and brands marketing,” Chidiac said.

Lazurde is bullish about this segment, as it expands the company’s revenues and profits while requiring much less working capital than its traditional business.

The jewelry manufacturer turned to a net profit of SAR 10.2 million in Q1 2021, against a net loss of SAR 1.6 million in the year-earlier period, Argaam reported.