FAB Maintains Lulu Retail at Buy Post-Q2 Results

02:33 AM EDT, 08/20/2026 (MT Newswires) -- FAB Securities reiterated its buy rating on Lulu Retail (ADX:LULU, with a price target of 1.50 Emirati dirhams, after the hypermarket chain operator posted its financial statements for the second quarter. "Despite a challenging operating environment and weaker discretionary demand, the Company maintained profitability through disciplined cost management and continued network expansion. Six new stores were opened in 2Q26, comprising five Mini Markets and one Express store, adding c. 2,997 sqm of selling space and bringing the total network to 283 stores and total selling space to 1.41 Mn sqm as of June 2026," analysts wrote in a Thursday first look note. The company logged a 26.5% annual decline in its second-quarter net profit to $42 million, missing FAB's estimate of $45 million. Revenue also decreased 2.3% year over year to $1.97 billion, compared with the research firm's $1.93 billion estimate. "Management remains confident in its strategy, with strong e-commerce growth supporting the long-term fundamentals. Local sourcing capabilities built ahead of the disruption provided a strong buffer against international freight constraints and helped maintain product availability across stores," the research firm said.