What: Chilean retail giant Falabella demonstrates continued recovery with 19% retail growth and significant profit surge in Q1 2025.

Why it is important: This performance confirms the effectiveness of Falabella's balanced approach to physical and digital retail, as evidenced by strong growth across traditional and online channels.

Falabella has demonstrated robust performance in the first quarter of the current fiscal year, with revenue reaching 3.1 trillion Chilean pesos (2.929 billion euros) across all business lines. The company's retail division led the growth with a 19% increase, particularly strong in fashion and technology categories. The domestic Chilean market showed exceptional performance with 21.1% growth, while Peru and Colombia contributed 9.1% and 5.6% increases respectively. The group's net profit surged to 201 billion pesos (188 million euros), significantly higher than the previous year's 61 billion pesos. Mall Plaza shopping centres posted an impressive 36.8% revenue increase, attributed to asset consolidation and new centre openings. Despite acknowledging rising trade tensions, the company maintains a positive outlook, emphasising its commitment to long-term growth through strategic execution.

IADS Notes: Falabella's Q1 2025 performance builds upon a remarkable transformation journey that began in 2024. In February 2025, the company reported an eightfold profit increase to €486 million, while December 2024 saw the announcement of a $650 million investment plan for 2025. The company's multi-market success is evidenced by its expansion in Colombia from 8 to 26 stores, supported by a new $130 million distribution centre. This growth aligns with Mall Plaza's ambitious development strategy, which has achieved a 215% increase in specialty retail and significant growth in restaurants and entertainment venues, demonstrating the group's successful integration of traditional and modern retail concepts.

Falabella Group Q1 2025 sales increase by 11%, driven by its retail business