Jamjoom Fashion expects market share growth

Stephen Holbrook Vice Chairman and CEO of Jamjoom Fashion

Stephen Holbrook, CEO of Jamjoom Fashion Trading Co., said the company’s e-commerce channel has become its top-performing store, posting nearly 50% growth in the first half.

He noted that this strong momentum is expected to continue alongside an increase in the company’s market share.

In an interview with Argaam, Holbrook explained that the main reason behind the limited profitability growth during the first half, compared to sales growth, was the timing of investments.

Seven out of 11 new stores began operations only in the final weeks of the period, resulting in full operating costs being recognized while contributing only modestly to revenues.

These early investments are expected to support earnings as the new stores reach full operational capacity during the second half and beyond. Meanwhile, EBITDA grew 10.9%, confirming the stability of the company’s underlying business fundamentals.

Holbrook noted that Nayomi generated SAR 345.7 million in revenue during the first half, up 11.8%, while Mihyar posted revenue of SAR 79.4 million, marking a 20.5% increase. Mihyar’s contribution to group revenue rose from 15.3% two years ago to 18.7% currently.

The CEO attributed the strong performance of both brands to a focus on innovation in product development, packaging, marketing, and in-store experience, noting that consistent execution of these elements is what transforms consumer understanding into commercial performance.

He further said consumer demand showed notable resilience during the current period. Saudi Arabia, which accounts for 71% of the company’s revenue, exceeded internal targets during the Ramadan season despite geopolitical uncertainty during the peak trading period.

According to Holbrook, this performance reflects the deep customer loyalty built by Nayomi and Mihyar over decades in the Kingdom.

He added that Gulf markets showed encouraging signs, with most recovering from the disruptions seen in March. While some markets required more time than others, positive momentum has become evident across all markets.

Holbrook said one of the key trends being monitored by the company is inflationary pressure on household purchasing power.

He pointed out that the number of customers increased 10.7% to 1.6 million, alongside a rise in average basket value, reflecting genuine momentum for the company’s brands.

The growth, he said, was driven by the launch of new categories, improved targeting through customer relationship management, and investment in inventory depth to ensure product availability.

Regarding expansion, Holbrook said the group ended the first half with 229 stores across six Gulf markets, including 164 Nayomi stores and 65 Mihyar branches. Mihyar added 12 new stores without any closures, while average store size increased 15.2%.

He added that the company plans to open an additional six to seven stores during the second half after securing new locations for both brands, stressing that the expansion program has continued despite geopolitical uncertainty.

On the outlook for the second half, the top executive said the company remains cautiously optimistic for H2 2026. He noted that it was positively surprised by the resilience in trading since March 31, while remaining focused on staying agile and responsive to consumers and the regional environment.

He expects the company to gain further market share and strengthen its leadership in its core categories, stressing that demand remains strong and the company’s strategy remains unchanged.

According to Argaam data, Jamjoom Fashion reported a net profit of SAR 80.5 million for H1 2026, compared to SAR 77.7 million in the same period of 2025.