A Saudi online beauty retailer that listed as a unicorn less than two years ago has slipped into the red. A fight for shoppers is forcing it to spend more just to keep them.
Nice One posted a nine-month net loss of SR9.5 million ($2.5 million), against a SR28.8 million profit a year earlier, it said in a filing. Revenue fell 3.4% to SR741 million.
Third-quarter profit fell 70% to SR1.8 million, even as sales rose 2.7% on Saudi National Day promotions.
Why it dropped
Nice One blamed intense competition. It's fighting for Saudi beauty shoppers against marketplaces such as Amazon and Noon, fast-fashion apps like Shein, and the beauty chains' own online stores.
Holding its ground is getting expensive. Marketing costs rose 18% to SR138 million.
Shoppers still drifted away. Website visits fell 8.2% to 96 million, and logistics problems hurt product availability and sales.
Costs of closing loss-making stores pushed administrative expenses up 27%. Its provision for slow-selling stock nearly tripled to SR12.5 million.
From unicorn to a quarter of the price
Nice One listed on Tadawul in January 2025 at SR35 a share, valuing it at about SR4 billion.
The shares now trade around SR9.20, about 74% below the IPO price, giving it a market value of about SR1.06 billion. They hit a record low of SR8 this year.
What to watch
Its own-label products and physical stores are the bright spots. Stores made up 4.7% of third-quarter sales, up from 2%.
The year-end sales season will test whether the extra marketing spend starts paying off.
