Falabella (FALABELLA) Q2 2025 earnings summary

Executive summary

• Delivered strong, broad-based performance across five growth engines: retail, digital banking, real estate, and digital platforms, with positive momentum in all areas for Q2 2025.

• Consolidated revenues rose 9% year-over-year in 2Q25, led by Falabella Retail (+15%) and online GMV up 19%.

• EBITDA margin improved to 14.9% (+369 bps vs 2Q24), with consolidated EBITDA up 46% year-over-year, reflecting operational efficiencies.

• Net income reached US$390 million (11.5% margin), up 3.2x year-over-year; digital bank surpassed 8.1 million active clients.

• Margin expansion and operational efficiencies contributed to improved profitability across all business units.

Financial highlights

• Total revenues: US$3,405 million (+9% year-over-year); EBITDA: US$506 million (+46% year-over-year, 14.9% margin); Net income: US$390 million (+217% year-over-year, 11.5% margin).

• Gross profit increased 18% year-over-year to US$1,321 million (38.8% margin).

• Online GMV reached US$824 million (+19% year-over-year); sellers' sales grew 36%.

• Financial services loan portfolio grew 11% year-over-year to US$7.3 billion; cost of risk improved by 22%.

• Net financial debt (ex-banks) reduced by 34% year-over-year to US$2,356 million; net debt-to-EBITDA (non-banking) at 1.9x.

Outlook and guidance

• Margin trajectory expected to remain positive, driven by strong operational performance and disciplined execution.

• Expense growth is expected to remain in line with inflation, with continued focus on cost discipline and operational leverage.

• Expansion plans include 80,100 m² of new GLA in malls in Chile and Peru, plus a new premium outlet format.

• Ongoing digital innovation and multiproduct banking strategy to drive further customer growth and engagement.

• Macroeconomic outlook for main geographies (Chile, Peru, Colombia) is stable, with comps expected to be higher in H2 due to last year’s recovery.