El Palacio de Hierro Sees 12% Sales Surge and 19% Profit Boost in First Half

El Palacio de Hierro closes the first half of the year with increases in sales and profit. The Mexican department store group closed the first six months of the current fiscal year with a 12% increase in revenues and 19% in net income, as reported to the Mexican stock exchange regulator. Last May, the company announced the retirement of Juan Carlos Escribano, its chief executive for the last decade, and the appointment of Eléonore de Boysson as CEO.

The Mexican group ended the first half of the year with a turnover of $1.47 billion. The company’s net income amounted to 75 million euros, up 19% on a like-for-like basis. The company’s gross operating profit (ebitda) rose 14% to $216 million.

Grupo Palacio de Hierro has especially elevated its digital sales, reporting overall growth in the first six months of 27% compared to the same period of 2024.

El Palacio de Hierro has raised its digital sales by 27% in the first half of the year

The rating agency Fitch Ratings has ratified the AAA rating (the highest rating in the local market) with stable outlook to Grupo El Palacio de Hierro and its bond issues. “The rating reflects the strong market position, brand recognition in Mexico, flexibility and a conservative financial profile,“ the company said in a statement.

In the first half of the year, El Palacio de Hierro’s performance was above the industry average. According to data from the Asociación Nacional de Tiendas de Autoservicio y Departamentales (Antad), sales growth in the retail sector in 2025 at same-store level was 3.2%, and in the department store segment at same-store level, growth stood at 6.1%.

El Palacio de Hierro, part of Grupo Bal, is one of the leading department store groups in Latin America. The company operates fifteen El Palacio de Hierro stores, two Casa Palacio stores, two Palacio Boutiques and two Palacio Outlets throughout Mexico. The company has exclusive department store sales in Mexico of the main international luxury brands and markets the brands and operates the independent boutiques of Adolfo Domínguez, Aldo, Mango and Michael Kors, reaching more than 150 points of sale.