MEXICO · RETAIL RESULTS
Key Facts
- —What is happening El Puerto de Liverpool, a Mexican department-store group, said on Monday, 26 October that third-quarter net profit fell 14.5% to 3.38 billion pesos (about US$181 million).
- —Why it matters Liverpool owns 49.9% of Nordstrom, the US retailer, and a smaller Nordstrom contribution drove the fall, even as its own operating profit rose 10.1%.
- —The numbers Revenue rose 2.2% to 49.1 billion pesos (about US$2.63 billion); EBITDA, a cash-earnings measure, rose 8.5% to 6.93 billion pesos (about US$371 million); overdue card loans reached 5.2%.
- —Who is who Liverpool runs Liverpool department stores, the Suburbia discount chain, a credit-card arm and 30 shopping centres; Nordstrom is the US chain in which it holds a 49.9% stake.
- —What to watch The formal franchise agreement to bring Primark, the budget fashion chain, to Mexico, which Liverpool expects to sign before the end of 2026, and the overdue-loan rate.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
- —What it means for you US investors in Nordstrom and Mexican retail should note that Liverpool’s profit now moves with Nordstrom’s accounting, while Mexican shoppers stay cautious.
Liverpool earned 14.5% less in the quarter. Its Nordstrom stake weighed, yet operating profit grew 10.1%.
El Puerto de Liverpool (company profile), a Mexican department-store group, said third-quarter net profit fell 14.5%. That is 3.38 billion pesos (about US$181 million), converted at 18.67 per US$1 on 28 October 2026.
The company blamed a smaller contribution from Nordstrom, the US retailer in which it holds 49.9%. Operating profit rose 10.1% to 5.32 billion pesos (about US$285 million).
What the Quarter Showed
Revenue reached 49.1 billion pesos (about US$2.63 billion), up 2.2% from a year earlier. The real-estate division grew 16.3%, financial services 6.9% and retail 1.1%.
Same-store sales at Liverpool stores rose 0.8%, while those at Suburbia, its lower-priced chain, fell 0.5%. Liverpool said both matched ANTAD, Mexico’s retail trade association, which reported 0.8% for department stores.
The retail gross margin widened 186 basis points to 32.8%. Liverpool credited a better sales mix, fewer promotions and cheaper imports thanks to the strong peso.
EBITDA, earnings before interest, tax, depreciation and amortisation, rose 8.5% to 6.93 billion pesos (about US$371 million). The margin improved 82 basis points to 14.1%.
Why Profit Fell
Liverpool’s share of profit from associates, mainly Nordstrom, fell 72.7% to 329 million pesos (about US$18 million). A year earlier it was 1.21 billion pesos (about US$65 million).
The company said the comparison reflects purchase-price allocation and other accounting effects from the Nordstrom deal that were absent a year ago. Purchase-price allocation spreads a deal’s price across the assets bought.
Without those effects, Liverpool said, net profit would have risen 5.8%. This is the company’s own adjusted view, not a reported figure.
Liverpool’s release gives comparable Nordstrom figures for June to August: revenue of US$4.09 billion, up 3.2%, and net income of US$16 million. A year earlier Nordstrom lost US$126 million on the same basis.
Over nine months, Liverpool’s net profit attributable to owners rose 8.9% to 10.42 billion pesos (about US$558 million). The first nine months of 2025 stood at 9.56 billion pesos (about US$512 million).
Credit Quality and Cautious Shoppers
Liverpool described a cautious consumer, especially in clothing and accessories. Digital sales made up 30.3% of Liverpool store sales.
Cardholders grew 7.3% to about 9.0 million, and the loan book grew 8.8% to 71.3 billion pesos (about US$3.82 billion). Loans overdue by more than 90 days reached 5.2%, up from 4.4%.
Provisions for bad debts rose 20% to 1.63 billion pesos (about US$87 million). Liverpool said it lent more conservatively on higher-risk products and raised reserves to 12.0% of the loan book.
Cash, Dividends and Expansion
Cash and equivalents roughly doubled to 21.0 billion pesos (about US$1.13 billion). Borrowings were 40.3 billion pesos (about US$2.16 billion), and net debt stood at 0.61 times EBITDA.
On 10 September Liverpool announced a franchise deal to bring Primark to Mexico. It expects to formalise the agreement before the end of the year.
The shopping-centre division reported 94.5% occupancy after buying the rest of Galerías Metepec on 9 July. It also opened the new Perisur zone, adding 7,000 square metres of rentable space.
The second dividend payment, 1.58 billion pesos (about US$85 million), was made on 9 October. The year’s total is 3.96 billion pesos (about US$212 million), or 2.95 pesos a share.
What It Means for US Readers
Liverpool’s results show how a US retailer now shapes a Mexican listed company’s bottom line. Nordstrom’s accounting and trading will keep moving Liverpool’s reported profit.
Mexico’s consumer matters for US exporters, because the two economies are closely linked. The Rio Times has covered Mexico’s record exports to the US and the state of Mexico-US relations.
It has also reported on Mexico’s push for US tariff cuts on steel and cars. A strong peso helped Liverpool’s import costs this quarter.
What Is Not Known
The quarterly report does not state earnings per share. This article therefore gives no per-share figure and no comparison with analyst forecasts.
The report’s headline says consolidated revenue rose 2.6%, but its text and tables show 2.2%. This article uses the tables.
The Primark agreement is not yet signed, and its terms and timing are not public. Nothing here comes from the results conference call held on Tuesday, 27 October.
What Comes Next
Liverpool expects to complete the Primark franchise agreement before the end of 2026. Fourth-quarter results will show whether the overdue-loan rate keeps rising.
Whether the Nordstrom drag continues depends on how purchase accounting enters later comparisons. Liverpool has given no forecast in this report.
Frequently Asked Questions
Did Liverpool profit rise or fall?
Net profit attributable to owners fell 14.5% to 3.38 billion pesos (about US$181 million). Operating profit rose 10.1%.
Why did the profit fall?
Liverpool said its share of Nordstrom earnings was smaller because of acquisition accounting. Adjusted for that, it said profit rose 5.8%.
What is Liverpool’s link to Nordstrom?
Liverpool holds 49.9% of Nordstrom, the US department-store chain. Its results include a share of Nordstrom’s profit.
Is Primark coming to Mexico?
Liverpool announced a franchise deal on 10 September. It expects to sign the formal agreement before the end of 2026.
Are Mexican shoppers spending less?
Liverpool called consumption cautious. Same-store sales rose 0.8% at Liverpool and fell 0.5% at Suburbia.
Sources: El Puerto de Liverpool, third-quarter 2026 results release, 26 October; El Puerto de Liverpool, investor relations; exchange rate from open.er-api.com, 28 October (all accessed 28 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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