El Palacio de Hierro increases sales by 11% and boosts profits by 23% in 2024
What: El Palacio de Hierro reports strong 2024 performance with 11% revenue growth to USD 3.2 billion and 23% profit increase, driven by digital transformation and operational efficiency.
Why it is important: The results show how department stores can leverage digital capabilities and efficiency initiatives to achieve strong financial performance.
El Palacio de Hierro achieved significant growth in 2024, with revenues reaching USD 3.2 billion (up 11%) and net profit increasing 23% to USD 164 million. Digital transformation played a key role, with online sales growing 28%, particularly driven by the successful launch of a mobile app. EBITDA rose 17% to USD 433 million, supported by improved gross margins and controlled operating expenses. The company expanded its physical presence with the opening of El Palacio de Hierro León, its 15th large-format store, while maintaining strong partnerships with luxury groups as exclusive distributor for brands like Burberry and Christian Dior.
IADS Notes: El Palacio de Hierro's strong 2024 performance, with 11% revenue growth to USD 3.2 billion and 23% profit increase, demonstrates successful retail transformation in Latin America. This aligns with December 2024's findings about retailers effectively balancing digital growth with operational efficiency. The 28% increase in online sales, driven by mobile app launch, reflects November 2024's analysis of retailers successfully integrating digital capabilities. The focus on improved gross margins through expense control and execution mirrors August 2024's observations about retailers optimizing operations while maintaining growth.
