What: Ripley achieves record quarterly EBITDA with 8.7% margin in Q1 2025, driven by retail growth in Chile and Peru, improved inventory management, and reduced promotional activity.

Why it is important: This performance demonstrates how Latin American retailers can successfully balance operational efficiency with market expansion, setting new benchmarks for profitability in a region where department stores are actively transforming their business models.

Ripley has achieved its strongest first quarter performance to date, reporting a net profit of 15.376 billion Chilean pesos (15.9 million euros), a remarkable turnaround from the 2.48 billion peso loss recorded in the same period last year. This success stems from significant improvements in gross margin management, reduced credit risk exposure, and more efficient inventory control. The company's consolidated revenue increased by 7.4% to 495.094 billion Chilean pesos (469 million euros), with operating income surging by over 730%. The retail segment emerged as the primary growth driver, with revenue rising 10.3% to 355.496 billion Chilean pesos. Performance was particularly strong in Chile, where comparable sales grew by 26.2%, driven by robust growth in beauty, sports, and women's fashion categories. Despite a 9.8% decline in digital sales due to increased physical store activity, the company has improved its online channel margin by 16%. The real estate division also contributed positively, with Mall Aventura shopping centres in Peru achieving 96.8% occupancy rates and tenant sales growing by 13.9%.

IADS Notes: Ripley's record-breaking Q1 2025 performance reflects a broader transformation trend in Latin American retail, paralleling Falabella Group's recent success with 19% retail growth in the same period. The company's focus on margin improvement through reduced promotional activity and inventory efficiency aligns with regional best practices, as demonstrated by Falabella's successful merger of retail and online teams to enhance operational efficiency. The shift in consumer behavior towards physical stores, indicated by Ripley's 9.8% decline in digital sales, mirrors industry-wide adaptations, with retailers like Falabella investing USD 650 million in 2025 to balance traditional and digital growth. This is supported by significant infrastructure investments, including automated distribution centers, enabling faster delivery and improved inventory management. The strong performance of Ripley's mall operations, with 96.8% occupancy rates, parallels Mall Plaza's success in Peru, where specialty retail has grown by 215%, demonstrating how integrated retail-real estate strategies are becoming increasingly crucial for sustainable growth in the Latin American market.

Ripley strengthens profitability in Chile and Peru