Q2 2025 El Puerto de Liverpool SAB de CV Earnings Call Transcript
Key Points
- El Puerto de Liverpool SAB de CV (ELPQF) achieved an 8% year-over-year increase in consolidated revenue, with notable growth in retail and financial services segments.
- The company's e-commerce strategy continues to deliver strong results, with a 24% year-over-year increase in total GMV and a substantial improvement in digital sales share.
- The acquisition of a 49.9% stake in Nordstrom is expected to provide geographic and currency diversification, along with potential collaboration opportunities in e-commerce and logistics.
- Liverpool's internal payment methods reached almost 53% of sales, marking a significant improvement and contributing to financial services revenue growth.
- The company received several awards and recognitions, including being ranked among the top three leading companies in Mexico for corporate sustainability and achieving a perfect score in the Corporate Integrity Index.
- The consolidated retail margin declined by 210 basis points due to an extensive calendar of promotional events and unfavorable exchange rates.
- Rising logistics expenses and one-time relocation costs associated with the new logistics hub negatively impacted profitability.
- The company's EBITDA decreased by 7.1% year-over-year, leading to a lower EBITDA margin compared to the previous year.
- Consolidated net profit after tax decreased by 47% year-over-year, impacted by higher financial expenses and currency translation losses.
- The company's inventory levels increased significantly, with challenges in normalizing inventory due to import cost increases and a slowdown in store openings.
Good morning, everyone and welcome to our second quarter 2025 conference call. Also, we achieved robust top line growth this quarter was shaped by a combination of key milestones and challenges that influenced our overall results.
The recovery has been slower than anticipated amid mixed consumer confidence and ongoing uncertainty. We are satisfied with the progress of our long term strategy, even as we recognize opportunities for further improvement.
Later in the call, I will provide an overview of the successful closing of our Nordstrom transaction along with a review of its immediate and mid-term effects on our financial statements. With that, let's begin the presentation.
During the second quarter, consolidated revenue reached [MXN56.4 billion], representing an 8% increase year over year, with retail revenue growing by 7.3%, our financial services revenue rising notably by 15.7%, and our retail state division increasing by 6.9%. Starting with retail, our commercial segment experienced a 10.3% increase in the second quarter.
While this
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