Background on El Puerto de Liverpool
El Puerto de Liverpool is Mexico’s largest department store chain, known for its extensive retail offerings. The company has been a significant player in the Mexican retail market for decades, providing consumers with a wide range of products from fashion and home goods to electronics and personal care items.
Q3 2025 Financial Performance
During the third quarter of 2025, El Puerto de Liverpool reported a 4.4% increase in its consolidated revenues, as detailed in their report submitted to the Mexican Stock Exchange (BMV).
Segment-wise Revenue Growth
- Retail: The retail sector saw a 2.9% increase in revenue.
- Financial Services: The financial services segment experienced a 15.7% growth.
- Real Estate: The real estate sector expanded by 7.3%.
The “La Gran Barata” event successfully liquidated old inventory, improving margins. However, the “Regreso a Clases” promotion faced challenges due to cautious consumers, while the “Venta de Media Temporada” had mixed results.
Key Product Categories
- Sports Shoes: Performed well
- Mattresses: Strong sales
- Home Appliances: Robust demand
- Cosmetics: Steady growth
- Clothing: Moderately below expectations
Same-Store Sales Growth
Despite industry pressures, Liverpool’s Same-Store Sales increased by 1.9% for Liverpool and 4% for Suburbia.
Margin Analysis
The report states that the commercial margin, excluding logistics costs, improved compared to the first half of the year. This improvement was driven by less aggressive promotional activities, a favorable exchange rate, and optimized inventory management.
- Total Margin: 31%, a decrease of 223 basis points due to margin pressure, non-recurring logistics expenses, and increased overall logistics costs.
Inventory and Financial Services Performance
Inventories increased by 15.8% compared to the previous year, with the company maintaining its strategy of having necessary merchandise for the end-of-year season. Obsolete inventory levels remain acceptable.
Financial Services Growth
The Income from Financial Businesses rose by 15.7%, primarily due to a 13.3% growth in the credit portfolio.
- Credit Portfolio Growth: 13.3%
- Cardholders: The number of cardholders grew to 8.2 million, indicating a sustained expansion in the customer base.
Operating Income and Leverage Ratio
The Operating Income (EBITDA) decreased by 14.8%, resulting in a margin of 13.3%, a decrease of 298 basis points compared to the previous year.
The Debt-to-EBITDA ratio (U12M) stood at 0.79x at the end of the quarter.
Nordstrom’s Contribution and Net Income
Nordstrom positively contributed to Liverpool’s results in the “Participations in Associated” segment, amounting to 1,141 million pesos during the reported quarter. The net income concluded the trimestre at 3,953 million pesos, a 10.5% reduction compared to 2024.
Credit Quality and Risk Appetite
The delinquency rate (ICV) increased to 4.4%, an increase of 34 basis points compared to the same period in 2024. This rise aligns with Liverpool’s strategy of expanding its risk appetite, adopting a more conservative approach in reserve policies. The coverage ratio increased by 63 basis points, reaching 10.7% of the total portfolio.
Key Questions and Answers
- What is El Puerto de Liverpool? El Puerto de Liverpool is Mexico’s largest department store chain, offering a wide range of products from fashion and home goods to electronics and personal care items.
- What were the key financial highlights for Q3 2025? The company reported a 4.4% increase in consolidated revenues, with the financial services segment growing by 15.7%. Same-store sales increased by 1.9% for Liverpool and 4% for Suburbia.
- How did inventory and financial services perform? Inventories increased by 15.8% compared to the previous year, while the income from financial businesses rose by 15.7% due to a 13.3% growth in the credit portfolio.
- What was the net income for Q3 2025? The net income concluded the trimestre at 3,953 million pesos, a 10.5% reduction compared to 2024.
- How did credit quality fare in Q3 2025? The delinquency rate increased to 4.4%, reflecting Liverpool’s strategy of expanding its risk appetite.
