Jarir Marketing recorded a 16.7 per cent rise in first-quarter net profit, lifted by stronger sales across most divisions and a sharp rebound in demand for smartphones, reinforcing the company’s position as one of Saudi Arabia’s most closely watched listed retailers.
Net profit attributable to shareholders reached SAR253.5 million for the three months ended 31 March 2026, compared with SAR217.3 million a year earlier. Revenue rose 14.4 per cent to SAR3.04 billion from SAR2.66 billion, while gross profit increased 12.9 per cent to SAR341.7 million.
The performance points to a stronger start to the year for Jarir after a period in which electronics retailers faced pressure from product-cycle shifts, changing consumer preferences and intense competition from online platforms. The company’s operating profit rose 14 per cent to SAR268.6 million, while earnings per share increased to SAR0.21 from SAR0.18.
Sales growth was broad-based, with smartphones standing out as the main driver. The category has become central to Jarir’s earnings profile, alongside computers, tablets, office supplies, books, school materials and after-sales services. Electronics and school supplies were among the largest revenue contributors during the quarter, supported by improved inventory availability and stronger consumer spending.
Jarir’s first-quarter result also reflected better cost absorption. Selling, marketing, general and administrative expenses rose in absolute terms, but their share of gross profit was lower than a year earlier. That operating leverage helped net profit rise faster than gross profit, indicating that higher sales volumes translated more efficiently into bottom-line growth.
The quarter was weaker than the preceding three months, when Jarir had achieved record sales. Revenue fell 4.9 per cent from SAR3.20 billion in the fourth quarter of 2025, while net profit dropped 18.2 per cent from SAR309.8 million. The sequential decline was linked largely to lower sales in some departments, particularly smartphones, after the unusually strong year-end period.
Gross margin pressure was also visible when compared with the previous quarter. Gross profit fell 15.2 per cent quarter-on-quarter, outpacing the decline in sales, as profitability across some categories softened. That underlines the challenge facing retailers that rely heavily on fast-moving electronics, where margins can fluctuate with launch cycles, promotions, exchange-rate movements and supply conditions.
Jarir opened two showrooms during the quarter, one at Al Alya Mall in Madinah on 26 January and another at Al Baha Square commercial complex in Al-Baha on 17 February. It has also been expanding its footprint through selected locations in major Saudi cities and the wider Gulf, including plans for further openings in Riyadh, Dammam, Jeddah and Kuwait during the year.
The company’s expansion strategy combines physical stores with a growing digital platform. Online sales now account for more than 30 per cent of total sales, highlighting the importance of e-commerce in a market where consumers increasingly compare prices, availability and delivery options before making purchases. Jarir’s store network remains important, however, because electronics buyers often seek product demonstrations, financing options and after-sales support.
Jarir’s 2025 annual disclosures show the scale behind the business. The company had more than 5,800 employees at the end of last year and reported 73 million website and app visitors, reflecting the strength of its brand recognition across Saudi Arabia and the Gulf. Its loyalty programmes, bank partnerships and instalment sales have become key tools in defending market share against specialist electronics retailers, marketplaces and hypermarket chains.
The broader Saudi retail market continues to benefit from population growth, high smartphone penetration, digital payments and urban development linked to Vision 2030. Consumer electronics remain a competitive but resilient category, supported by demand for mobile devices, laptops, tablets, gaming products and connected home equipment.
Supply-chain risks have not disappeared. Regional tensions and global logistics disruptions have affected availability of certain electronic devices, though the impact on Jarir’s wider product range has been limited. The company’s near-term performance will depend partly on securing sufficient quantities of high-demand electronics, particularly smartphones and computers.
Foreign exchange movements also affected comprehensive income during the quarter. Comprehensive income was lower than net profit mainly because of foreign exchange losses linked to Jarir’s subsidiary in Egypt after the Egyptian pound weakened against foreign currencies, including the Saudi riyal.
Net profit attributable to shareholders reached SAR253.5 million for the three months ended 31 March 2026, compared with SAR217.3 million a year earlier. Revenue rose 14.4 per cent to SAR3.04 billion from SAR2.66 billion, while gross profit increased 12.9 per cent to SAR341.7 million.
The performance points to a stronger start to the year for Jarir after a period in which electronics retailers faced pressure from product-cycle shifts, changing consumer preferences and intense competition from online platforms. The company’s operating profit rose 14 per cent to SAR268.6 million, while earnings per share increased to SAR0.21 from SAR0.18.
Sales growth was broad-based, with smartphones standing out as the main driver. The category has become central to Jarir’s earnings profile, alongside computers, tablets, office supplies, books, school materials and after-sales services. Electronics and school supplies were among the largest revenue contributors during the quarter, supported by improved inventory availability and stronger consumer spending.
Jarir’s first-quarter result also reflected better cost absorption. Selling, marketing, general and administrative expenses rose in absolute terms, but their share of gross profit was lower than a year earlier. That operating leverage helped net profit rise faster than gross profit, indicating that higher sales volumes translated more efficiently into bottom-line growth.
The quarter was weaker than the preceding three months, when Jarir had achieved record sales. Revenue fell 4.9 per cent from SAR3.20 billion in the fourth quarter of 2025, while net profit dropped 18.2 per cent from SAR309.8 million. The sequential decline was linked largely to lower sales in some departments, particularly smartphones, after the unusually strong year-end period.
Gross margin pressure was also visible when compared with the previous quarter. Gross profit fell 15.2 per cent quarter-on-quarter, outpacing the decline in sales, as profitability across some categories softened. That underlines the challenge facing retailers that rely heavily on fast-moving electronics, where margins can fluctuate with launch cycles, promotions, exchange-rate movements and supply conditions.
Jarir opened two showrooms during the quarter, one at Al Alya Mall in Madinah on 26 January and another at Al Baha Square commercial complex in Al-Baha on 17 February. It has also been expanding its footprint through selected locations in major Saudi cities and the wider Gulf, including plans for further openings in Riyadh, Dammam, Jeddah and Kuwait during the year.
The company’s expansion strategy combines physical stores with a growing digital platform. Online sales now account for more than 30 per cent of total sales, highlighting the importance of e-commerce in a market where consumers increasingly compare prices, availability and delivery options before making purchases. Jarir’s store network remains important, however, because electronics buyers often seek product demonstrations, financing options and after-sales support.
Jarir’s 2025 annual disclosures show the scale behind the business. The company had more than 5,800 employees at the end of last year and reported 73 million website and app visitors, reflecting the strength of its brand recognition across Saudi Arabia and the Gulf. Its loyalty programmes, bank partnerships and instalment sales have become key tools in defending market share against specialist electronics retailers, marketplaces and hypermarket chains.
The broader Saudi retail market continues to benefit from population growth, high smartphone penetration, digital payments and urban development linked to Vision 2030. Consumer electronics remain a competitive but resilient category, supported by demand for mobile devices, laptops, tablets, gaming products and connected home equipment.
Supply-chain risks have not disappeared. Regional tensions and global logistics disruptions have affected availability of certain electronic devices, though the impact on Jarir’s wider product range has been limited. The company’s near-term performance will depend partly on securing sufficient quantities of high-demand electronics, particularly smartphones and computers.
Foreign exchange movements also affected comprehensive income during the quarter. Comprehensive income was lower than net profit mainly because of foreign exchange losses linked to Jarir’s subsidiary in Egypt after the Egyptian pound weakened against foreign currencies, including the Saudi riyal.
Topics
Live News