The retailer Marka reported a loss for the first quarter of this year and delayed forecasts for profit until next year.
Marka, which listed on the Dubai Financial Market in September, posted a loss of Dh8.3 million in the first quarter, it said in a statement.
“Once the acquisitions completed during the period are consolidated, we anticipate that the company will enter profitability within 2016, significantly ahead of the IPO forecast,” said Khaled Almheiri, vice-chairman and managing director.
Last month, Mr Almheiri said completing the acquisition of the sports retailer Retailcorp would bring in revenue and profit for Marka in the current year. The company did not explain why expectations for profitability had changed.
Marka said it expects to close more deals by the third quarter of this year, after completing two acquisitions in the first quarter of this year.
It had bought Retailcorp for Dh220m and a 60 per cent stake in Cheeky Monkeys Playland and Sweet Surprises, a Dubai-based firm that provides children’s indoor play areas and entertainment, for Dh30m.
Marka raised Dh500m in equity last year in the first initial public offering on the DFM for five years.
The firm has three business units: sports, fashion and hospitality. It currently has four fashion outlets and 15 sporting goods stores.
It is planning to open Taste of Italy by Heinz Beck in Dubai and the football-themed restaurant, UEFA Champions League Experience, in Abu Dhabi during this quarter.
Marka also plans to open the world’s first Harper’s Bazaar Cafe in Dubai this year, with a target to open nine other branches in the Middle East by 2020.
Marka has signed global superstars such as the footballer Cristiano Ronaldo to promote his own designer footwear, as well as leading fashion brands such as Sonia Rykiel and Laurel. It also plans to open high-quality casual dining outlets in retail centres.
Marka shares closed down 1.63 per cent at Dh1.21. The share price is down 8.33 per cent on the year.
dalsaadi@thenational.ae
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