El Puerto de Liverpool, S.A.B. de C.V.

Second-quarter consolidated revenue reached MXN 57.3 billion, up 1.5% year over year. Consolidated commercial gross margin expanded 188 basis points to 41.9%, and EBITDA reached MXN 8.5 billion, down 1.2% year over year, with EBITDA margin at 14.9% (-41 bps). Net income increased 55% year over year to MXN 5.1 billion. On the business lines, retail sales grew 0.4%, financial services revenue rose 9.9%, real estate revenue rose 8.6%, and Liverpool digital GMV increased 4.8%. For full-year 2026, management now expects Liverpool same-store sales of 2.5% to 3.5%, Suburbia same-store sales of minus 1% to plus 1%, digital GMV growth of 10% to 12%, net loan portfolio growth of 6% to 8%, and EBITDA margin of 14.5% to 15.5%.

Management emphasized that the quarter was shaped by soft consumer demand, higher competitive intensity, and temporary World Cup-related spending shifts that hurt apparel traffic even as sports and TV categories benefited. The CEO framed the quarter as a case of disciplined execution: protecting margins, improving inventory health, and using the stronger peso to support profitability rather than chasing sales with heavy discounting. He also highlighted progress on logistics normalization and the completion of the e-commerce platform migration, saying the company exits the quarter with a stronger operating foundation.

The CFO pointed to a 188 bps expansion in consolidated gross margin to 41.9% and noted that Arco Norte logistics costs were about MXN 100 million in the quarter, with cumulative impact around MXN 250 million, in line with prior guidance and expected to become immaterial. He also highlighted MXN 2.1 billion of credit loss provisions, up 27% year over year, alongside an NPL ratio of 4.7%, reserve coverage of 11.2%, and net debt to EBITDA of 0.6x. On cash and allocation, he said operating cash flow was MXN 3.4 billion on a cumulative basis, cash and equivalents were MXN 1.2 billion, and capex was down 48% year over year as the logistics-heavy phase eased.

Analysts focused on the net impact of the World Cup, the weak Suburbia performance, credit growth discipline, expense pressure, real estate occupancy, Nordstrom contribution, and the digital platform migration. Management said the World Cup was a net negative overall because sports-related gains were more than offset by weaker traffic and apparel demand, while Suburbia was pressured by weaker demand, less clearance activity, and deliberate category repositioning; they also said Suburbia should improve in the back half on easier comps. On digital, management said the platform migration caused more disruption than expected but the impact should decrease in Q3 and digital growth should reaccelerate in the second half.