What: El Puerto de Liverpool reports 10.4% revenue growth to 45.5 billion pesos in Q1 2025, despite 19.6% profit decline and reduced EBITDA margins across its retail, financial, and real estate operations.

Why it is important: This mixed financial performance from Mexico's largest department store group demonstrates how diversified business models can drive top-line growth while facing margin pressures in traditional retail operations.

El Puerto de Liverpool's first quarter results for 2025 present a complex picture of retail transformation in action. The company achieved total revenues of 45,527 million pesos (2,042 million euros), marking a 10.4% increase from the previous year, while experiencing a 19.6% decline in profits to 2,317 million pesos. The commercial segment, which represents the bulk of operations at 39,106 million pesos, grew by 9.5%, while financial and real estate divisions showed stronger growth at 16.8% and 14.3% respectively. The company's dual retail formats demonstrated varying performance, with Liverpool stores posting a 9.5% increase to 33,593 million pesos and Suburbia achieving 9% growth to 5,105 million pesos. Despite the revenue growth, EBITDA fell 7.3% to 5,484 million pesos, with margins contracting from 14.4% to 12%. The strategic reduction of 36 stores from the previous year, while maintaining stable Liverpool locations, reflects the company's focused approach to network optimisation.

IADS Notes: El Puerto de Liverpool's Q1 2025 results reflect broader trends in Mexican retail transformation. While the 10.4% revenue growth aligns with the company's strong performance trajectory, as evidenced by its 9.2% revenue growth in 2024, the decline in EBITDA margin from 14.4% to 12% highlights increasing pressure on profitability facing major retailers. The varying performance across business segments, particularly the stronger growth in financial services (16.8%) and real estate (14.3%), mirrors successful diversification strategies seen in the market, exemplified by Coppel's integrated retail-banking model announced in January 2025. The company's strategic approach to store network optimization, reducing 36 locations while maintaining Liverpool branded stores, contrasts with competitor El Palacio de Hierro's expansion strategy, which saw success with its MXN 3,000 million León store investment. This careful balance between expansion and optimization becomes particularly significant as Liverpool pursues international growth through its Nordstrom partnership, demonstrating how Mexican retailers are navigating domestic market challenges while seeking global opportunities.

El Puerto de Liverpool Q1 sales increase by 10%, profits fell