SMU (SMU) Q3 2025 earnings summary

Executive summary

• Opened 10 new stores in 2025, with 44 of 58 planned stores now operational; strong new store sales exceeding expectations in both Chile and Peru.

• Accelerated conversion of Mayorista 10 stores to Alvi and Super10 formats, expanding store footprints and brand visibility.

• Private label penetration reached 13% of sales, supporting profitability and competitiveness.

• Efficiency initiatives, including technology rollouts and organizational restructuring, led to a 1.4% year-over-year reduction in average headcount despite store growth.

• Recognized for gender equality and diversity, with 65% female employees and 36% women in leadership.

Financial highlights

• Revenue for Q3 2025 was CLP 690 Bn, down 6.1% year-over-year; 9M25 revenue was CLP 2,075 Bn, down 2.9%.

• Gross margin expanded to 32.3% in Q3 2025 from 29.6% in Q3 2024, with gross profit up 2.3% to CLP 223 billion.

• EBITDA for Q3 2025 was CLP 50.6 Bn, down 1.6% year-over-year, but EBITDA margin improved by 30 bps to 7.3%.

• Net income for Q3 2025 surged 337% year-over-year to CLP 32.6 Bn, driven by non-operating gains from asset sales and purchase options.

• Operating expenses grew 3.5% in Q3, below inflation, with notable increases in service and rent expenses but savings in insurance and external services.

Outlook and guidance

• Q4 2025 sales expected to be flat year-over-year but improved sequentially from Q3, with continued focus on store expansion, efficiency, and omnichannel strategy.

• Gross margin for Q4 expected to remain at Q1 levels (~32.5%), with a targeted full-year EBITDA margin approaching 8%.

• Investment plan for 2025–2029 totals approximately USD 600 million, mainly funded by operating cash flow.

• Leverage expected to improve as EBITDA recovers in 2026–2028; temporary impact on financial ratios as new stores mature.

• Continued strong expense discipline and further efficiency measures planned.