The annual revenue of Damas, which last month signed an extension to a standstill agreement on $872m of debt with most of its bank creditors, fell 31 percent to $898.54 billion over corresponding period last year, the company said. Gross profits declined by 33 percent to $153.84 million, it added.

The company, with about 450 stores around the world, blamed the global downturn, low consumer confidence and raised gold prices for a decline in total sales volume.

The Dubai-based retailer, which set aside money to cover losses from investments and an erosion in the value of inventory, said its non-recurring expenses and impairment charges stood at $522.79 million.

“In making these provisions, Damas is recognizing the challenges of the past 12 months while ensuring that the company’s efforts are focused on recovering outstanding receivables held by counterparties in an orderly manner,” the firm said.

Damas shares, that closed unchanged at 16 cents on Nasdaq Dubai on July 29, didn’t trade on Sunday due to holiday. The shares have fallen 30 percent this year, putting the value of the company at $158 million.

“Damas continues to move forward with its financial restructuring, demonstrating the confidence of our bank lenders in the strength of the company’s underlying business model, while also preparing for the implementation of our operational restructuring, which will allow the company to sustain its growth trajectory despite current challenging conditions,” said Anan Fakhreddin, Chief Executive Officer of Damas International.

In March, the founders of Damas International — Tawhid, Tawfiq and Tamjid Abdullah — were fined and banned from executive positions at any Dubai International Financial Centre company for between five and 10 years as the emirate’s financial markets watchdog found they had committed a series of “unauthorized transactions”.

Dubai’s Financial Services Authority fined Damas International, and the brothers, a total of $3.72 million and ordered them to repay $99.4 million plus the value of approximately 1.9 million grams of gold after it was found that they had withdrawn from the company’s funds for their personal use without disclosing it to the board.

In June, the jeweler appointed the company’s founding brothers, who missed the first scheduled repayment of $55m due in April, as senior advisors.

In a statement to Nasdaq Dubai, Damas last month said that the company’s standstill agreement on $872m of debt with most of its creditors has been extended until September 30 to allow the company to complete its restructuring plan.

The retailer, which is pushing ahead with its expansion, is planning to open as many as 100 stores in India over three years. It has assigned a board member to conduct market research in India over the next two months.