El Puerto de Liverpool (LIVEPOLC) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue rose 10.4% year-over-year to MXN 45.5 billion, driven by all business segments, but profitability was pressured by aggressive promotions, higher costs, and increased operating expenses.

• Retail revenue grew 9.5%, financial services 16.8%, and real estate 14.3%, with omnichannel and digital strategies driving outperformance versus industry benchmarks.

• Net income declined 19.1% year-over-year, impacted by higher financial expenses, operating costs, and loan loss provisions.

• Digital ecosystem expanded, with total GMV up 15.8% and Liverpool's digital share reaching 28.7%.

• The company expanded its physical and digital footprint, opening new stores and a major logistics center.

Financial highlights

• Consolidated revenue: MXN 45.5 billion (+10.4% YoY); retail +9.5%, financial services +16.8%, real estate +14.3%.

• Same-store sales: Liverpool +7.9%, Suburbia +7.3%.

• Gross profit margin declined by 180 bps YoY to 40.1% due to promotions, FX, tariffs, and logistics costs.

• EBITDA: MXN 5.5 billion (-7.3% YoY); EBITDA margin 12% (-2.3 p.p. YoY).

• Inventories increased 21.4%, reflecting new season products, higher import costs, and FX effects.

Outlook and guidance

• Expectation of continued strong top-line growth, with margin pressure to ease as promotional intensity normalizes.

• Inventory levels expected to align with sales growth by end-Q2 for Liverpool and mid-Q3 for Suburbia.

• No significant logistics savings expected in 2025 due to overlap of old and new distribution networks; normalization anticipated in Q4.

• Dividend of MXN 3,959 million pesos (17.1% of 2024 net profit) to be paid in two installments in 2025.

• Proceeds from $1 billion bond issuance to finance investment in Nordstrom Inc. agreement.