El Puerto de Liverpool (LIVEPOLC) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for Q2 2025 reached $56.4 billion, up 8% year-over-year, with retail up 7.3%, financial services up 15.7%, and real estate up 6.9%.

• Net profit after tax was $3.3 billion, a 47% year-over-year decrease, impacted by higher financial expenses, bad debt provisions, and currency losses.

• EBITDA was $8.6 billion, down 7.1% year-over-year; EBITDA margin at 15.3%, down 2.5 points.

• The Nordstrom acquisition was completed, with Liverpool now holding a 49.9% stake, expected to provide strategic and financial benefits.

• Digital ecosystem expanded, with total GMV up 23.9% and digital penetration at 33.3%.

Financial highlights

• Same-store sales: Liverpool up 4.7% (driven by 5.8% higher average ticket, offset by 1.1% lower traffic); Suburbia up 8.2% (10.2% higher average ticket).

• Consolidated retail margin declined 210 bps to 31% due to extensive promotions, tariffs, and higher import/logistics costs.

• Operating expenses rose 12.4% due to wage adjustments, marketing, and higher loan loss reserves.

• Loan loss provision increased 56% year-over-year to $1,635 million pesos.

• Inventories rose 22.6% year-over-year, with Liverpool up 20% and Suburbia up 40%.

Outlook and guidance

• Margin expected to recover in H2 as promotions ease, exchange rates improve, and import delays subside; full-year margin to be ~100 bps below 2024.

• Inventory in Liverpool expected to normalize in Q3, Suburbia by early Q4.

• NPL provisions for the year expected to rise 30–35% over 2024, but profitability guidance unchanged due to offsetting revenue growth.

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

• Fitch Ratings affirmed credit ratings at 'AAA (mex)' and 'BBB+' international, both with Stable Outlook.