Ripley Corp (RIPLEY) Q2 2025 earnings summary

Executive summary

• Achieved record second-quarter EBIT and net income, with profitability and growth focus driving results year-over-year.

• Revenues grew 3.7% year-over-year in 2Q25, driven by strong consumer demand in Peru and loan portfolio growth in Chile, aided by currency appreciation of the Peruvian sol against the Chilean peso.

• Strong performance in Peru retail and banking segments, supported by currency appreciation and loan growth.

• Continued ESG progress, including talent recognition, sustainability in private label apparel, and renewable energy adoption.

• Gross margin expanded by 352 bps to 36.8%, mainly due to lower net cost of risk, reduced funding costs, improved inventory management, and higher-margin product sales.

Financial highlights

• Revenue rose 5.4% year-over-year to CLP 1,028,366 million in 2Q25; gross profit up 14.7% to CLP 196,242 million.

• EBIT increased 42.0% year-over-year to CLP 29,199 million; EBITDA up 21.3% to CLP 49,004 million with a 9.2% margin.

• Net income reached CLP 15,736 million, up CLP 4,612 million YoY, marking the best second-quarter result in seven years.

• Retail revenues up 2.6% YoY, banking revenues up 6.1% YoY, real estate revenues up 8.0% YoY.

• SG&A expenses increased 10.9% YoY, mainly due to higher personnel costs and regulatory changes in Chile.

Outlook and guidance

• Targeting 100% sustainable attributes in private label apparel by 2026.

• New advertising revenue streams and EBITDA margin improvements expected from shopping center expansions in 2026.

• Management expects continued focus on profitability and efficiency, with further improvements in banking and retail operations, especially in Peru.

• Gradual stabilization of banking solvency ratios in Chile is anticipated following regulatory changes.