Falabella retail shows revenue growth in Peru in Q2 2024

What: Falabella reported revenues of S/918.6 million from ordinary activities in Peru during the second quarter of 2024, marking a 1.0% increase compared to the same period the previous year.

Why it is important: This growth indicates a positive recovery trajectory for Falabella in the Peruvian market, driven by governmental economic measures and improved weather conditions. The company's efforts in cost efficiency and strategic investments further highlight its resilience and adaptability in a competitive market.

Falabella has shown a notable recovery in Peru, reporting revenues of S/918.6 million in Q2 2024, a 1.0% increase from the previous year. This growth is attributed to increased demand fueled by government measures like the release of Compensation for Time of Service (CTS) funds and pension withdrawals, as well as favourable weather conditions. The company also reported an 8.1% reduction in the cost of sales, thanks to a business efficiency plan. Investments in store renovations and a distribution centre totaled S/11.6 million, while property, plant, and equipment acquired through financial leasing stood at S/58.5 million. Despite a slight decrease in equity, Falabella continues to operate 31 stores across Peru, with a significant presence both in Lima and other provinces, alongside robust online and institutional sales channels.