Falabella Q2 reports -51.7% for net profit

What:  Due to increased costs, Falabella’s Q2 earnings reports showed a 51.7% drop year-over-year for net profit.

Why it is important: Falabella cites margin pressures in Chile and increased expenses caused by both local and global complex scenarios having affected the net profit for the company. 

Additional expenses related to the “development of capacities” across digital platforms have also contributed to the year-over-year decrease. The financial report noted currency variations as a key factor in the profit drop as well.

The company's profit for the quarter was 65.12 billion pesos (70.8 million USD), and its second-quarter net revenue grew 16.1% to 3.08 trillion pesos (3.3 billion USD). Falabella’s EBITDA fell 31.7% to 245 billion pesos in the quarter, missing the Refinitiv forecast of 316 billion pesos.