Liverpool Forecasts Lower Profit Margins in 2025 Despite Rising Revenue

Liverpool publishes lower forecasts. The Mexican department store group has anticipated part of its preliminary results for the fourth quarter of fiscal 2025 and, despite projecting revenue growth, it has also anticipated lower profitability, according to a document filed with the Mexican Stock Exchange (BMV).

Specifically, the department store chain expects an increase of between 4.8% and 5.2% in revenues; 6.5% and 6.9% in comparable sales, according to local media Cronista.com. Liverpool expects a contraction in its profitability margins both in the fourth quarter and for the year to date.

According to company statements, the pressure on margins derives from a decrease in commercial gross margin, which incorporates higher logistics costs due to the move to the new Arco Norte location. This has led to an increase in operating expenses and a more restrained approach to forecasting.

El Puerto de Liverpool anticipates an impact of more than $170 million from the purchase of Nordstrom

The company has also analyzed the purchase of Nordstrom, the U.S. department store company acquired with the founding family. The transaction will have an estimated impact of between $170 million and $175 million.

Liverpool has also improved its liquidity level from 24.7 billion Mexican pesos ($1.42 billion) to 25.3 billion Mexican pesos ($1.46 billion). Liverpool is scheduled to release its final fourth quarter and year-end accounts on February 23th.

In the first nine months of the year, El Puerto de Liverpool grew in all its business lines, although trade slowed its positive evolution. Its global turnover reached 150,096 million Mexican pesos ($8,670 million), 7.5% more than in the first nine months of a year ago. However, its profits contracted by 29%.