Earnings call transcript: El Puerto de Liverpool Q3 2026 revenue misses view

El Puerto de Liverpool disclosed a slight revenue shortfall in Q3 2026, with consolidated sales of MXN 49.1 billion, falling short of the MXN 49.72 billion forecast. Despite the miss, the company's gross margin, EBITDA, and cash generation improved in a challenging consumer environment. The shares remained unchanged at $109.71, near the top of their 52-week range, indicating that investors weighed the minor revenue shortfall against stronger profitability, a robust balance sheet, and progress in digital and real estate operations.

Revenue climbed 2.2% from the prior year to MXN 49.1 billion, driven by a 1.1% increase in retail sales and a 16.3% jump in real estate revenue. Gross margin expanded by 220 basis points to 42.8%, fueled by better retail merchandise margins, while EBITDA surged 8.5% to MXN 6.9 billion, and EBITDA margin rose to 14.1%. Net income, however, fell 14.5% to MXN 3.4 billion due to accounting effects from the Nordstrom acquisition.

Digital growth is expected to rebound in Q4 after addressing platform migration issues. Real estate and financial services both grew, offsetting slower retail demand, and the company demonstrated disciplined execution across its various sectors. The stock was trading near the high end of its 52-week range, suggesting that investors had already accounted for much of the company's recent progress.

Despite trading close to its peak, the stock appeared undervalued based on its P/E ratio of 7.91, indicating the market may have underappreciated Liverpool's profitability.