Grupo Axo Sales Surge Nearly 13% in Q1 2024

Grupo Axo, a Mexican conglomerate operating brands such as Coach and Brooks Brothers, announced a 12.9% increase in net sales and revenue for the first quarter of 2024, reaching MX$5.4 billion compared to the same period in 2023, according to its latest financial report.

By segment, the lifestyle category, which includes brands such as Tommy Hilfiger, Brooks Brothers, Victoria's Secret, Gap, Calvin Klein, and Old Navy, saw a 20.8% increase in net sales during the first three months of the year. The Athletics & Outdoors division, featuring brands like The North Face, TAF, Nike, Andesgear, and Lust, registered a 12.8% rise in net sales compared to the first quarter of 2023.

Conversely, the Off-Price segment, which encompasses stores like Promoda, Urban Store, and Reduced in Mexico, as well as Surprice in Chile and Peru, experienced a slight decline of 1.4%. The company attributed this drop to an inventory shortage in the online channel. This segment also includes the e-commerce platform Privalia in the Mexican market.

Grupo Axo highlighted that total digital sales for the first three months of 2024 reached MX$715 million, accounting for 13.2% of total sales.

In its report to the Mexican Stock Exchange (BMV), Grupo Axo also discussed its recent strategic partnership with Ulta Beauty. “This will mark our entry into the beauty industry, an exciting new segment that expands our offerings beyond our three existing categories,” the company stated.

Grupo Axo ended the first quarter of the year with 7,883 retail points of sale, eight mobile applications, and 37 digital websites across Mexico, Chile, Peru, and Uruguay. Between Jan. 1 and Mar. 31, the company opened 24 new locations.