eXtra sees continued sales growth in Q4 2026, new showroom planned: CEO

Ali Mansour, CEO of United Electronics Co. (eXtra)

Ali Mansour, CEO of United Electronics Co. (eXtra), said the company expects sales growth to continue in Q4 2026, driven by the strength of the shopping season, a diverse product offering, and multiple sales channels. He also noted that the company is preparing for the season by maintaining appropriate inventory levels to meet expected demand.

In statements to Argaam, Mansour said the company began planning early to ensure product readiness and availability across its various sales channels, adding that it is optimistic about the performance of the fourth quarter of this year.

He indicated that the company continues to implement its expansion plans in a measured manner, noting that it plans to open a new showroom in the Kingdom during Q4 2026, which will support the expansion of its showroom network and strengthen its market presence.

Commenting on eXtra’s Q3 2026 results, Mansour said the company’s core businesses performed positively despite a 26.7% decline in net profit. The retail segment continued to perform strongly, recording 10.6% growth in net profit and contributing around 87% of the company’s net profit during the quarter, driven by continued sales growth and improved operating performance.

According to the CEO, the decline in the company’s consolidated net profit was mainly attributable to higher provisions in the consumer finance segment. He explained that these provisions reflect a proactive approach to managing credit risk and strengthening the quality and resilience of the portfolio, rather than weakness in the segment’s operating performance.

Mansour further said that Tasheel continued to achieve operational growth, with revenue rising 3.3% in Q3, alongside proactive measures to enhance portfolio quality and manage risks in a more disciplined manner.

“The Q3 results reflect the continued strength and resilience of the retail business, alongside growth in the consumer finance business, while we continue to take proactive steps to enhance portfolio quality and manage risks in a more disciplined manner,” he said.

Mansour explained that the growth of the retail segment in Q3 was supported by several factors, most notably the launch of the new iPhone devices, continued growth in average basket size, improved services performance, the solid performance of the eXtra showroom network, and continued growth in the Clix brand.

Moreover, demand for smartphones and electronic devices improved compared with last year, backed by the launch of the new generation of iPhones, said the CEO. He noted that launching products at different stages throughout the current year provides a longer period to benefit from launch-related demand.

The iPhone 18 Pro became available in the Kingdom last September, while the iPhone Duo is scheduled to become available on October 23. This gradual product launch provides a longer period of activity compared with the usual launch cycle, according to the top executive.

Regarding supply chains, Mansour said that geopolitical tensions and disruptions to shipping movements caused some delays. “However, we have been prepared for such conditions since the beginning of the year by maintaining high inventory levels, planning early, and adapting our supply chain operations to current circumstances,” he added.

The top executive also stressed that advance planning and flexibility in supply chain management helped the company deal with delays and minimize their impact on operations, while maintaining product readiness and availability for customers, ensuring a continued shopping experience and meeting their needs.