Liverpool 2Q26 Net Profit Rises 55.3% Amid Mixed Retail Sales

El Puerto de Liverpool reported a 55.3% net profit increase in 2Q26 to MX$5.12 billion (US$293.78 million), driven by reduced financial expenses despite a 6.6% sales decline at its Suburbia discount format. Consumer caution amid macroeconomic deceleration and a 90-day non-performing loan ratio increase to 4.7% highlight rising credit risk across Mexico's consumer finance and retail sectors. As department store operators expand proprietary credit portfolios and execute cross-border acquisitions like Liverpool's merger with Nordstrom, financial health depends on managing credit risk alongside omnichannel fulfillment across domestic and international markets.

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Mexican department store operator El Puerto Liverpool reported a 55.3% year-over-year increase in net profit during 2Q26, reaching MX$5.12 billion (US$293.78 million), per financial reports filed with the Mexican Stock Exchange (BMV). According to the filings, the gains were driven by a sharp reduction in financial expenses despite mixed consumer demand across its retail store formats.

The company noted that department store performance experienced a mixed impact from the World Cup tournament, where increased consumer spending on televisions, screens, and sporting goods was offset by reduced dynamism across other product categories, particularly apparel. Liverpool emphasized that its customer base remains cautious in response to a broader macroeconomic deceleration across Mexico.

Against this macroeconomic backdrop, operational performance diverged significantly between Liverpool's primary retail divisions. The flagship Liverpool department store format posted a 3.1% year-over-year sales increase, reaching MX$43.70 billion (US$2.51 billion) for the second quarter. 

Conversely, the company's Suburbia discount store format recorded a 6.6% sales contraction, falling to MX$5.39 billion (US$308.98 million). The sales decline at Suburbia reflects tightened household budgets among middle- and lower-income consumer segments during periods of slower economic growth. Despite top-line sales pressure at Suburbia, consolidated net profit surged as Liverpool cut its net financial expenses by nearly 50% compared to the second quarter of 2025.

Credit Division Expansion

Parallel to its store operations, Liverpool expanded its financial services division by issuing 644,000 net new credit cards over the past 12 months. Total active credit cards across the Liverpool and Suburbia store networks reached 8.84 million, compared to 8.20 million in the prior-year period. Card issuance growth was led by the flagship Liverpool division, which added 373,000 credit cards to its active portfolio, while the Suburbia division added 271,000 cards. The expansion of Liverpool's credit division is a core pillar of its broader commercial ecosystem, with proprietary credit cardholders generating approximately 48.9% of total company sales as of mid-2025. 

Driven by this account expansion, Liverpool's gross credit portfolio grew 9.5% year-over-year to MX$75.25 billion (US$4.32 billion). However, credit risk indicators registered an uptick, with the 90-day non-performing loan (NPL) ratio rising to 4.7%, up from 4.0% in 2025.

2025 Growth, Entry Into US Market

Nationwide, Liverpool operates a comprehensive real estate and commercial portfolio comprising 320 department stores under the Liverpool and Suburbia store banners, 128 specialty boutiques, and 29 shopping centers, supported by a corporate workforce exceeding 80,000 employees. To strengthen its retail footprint and click-and-collect fulfillment capabilities, Liverpool expanded its Liverpool Express store format across 16 Mexican states in 2025, investing up to MX$4.7 million per location to reinforce key commercial markets.

Beyond domestic commercial channels, Liverpool has pursued strategic international diversification through a US$6.2 billion merger with US department store chain Nordstrom. Following approval from Nordstrom shareholders, the company operates under Norse Holdings, a joint parent entity controlled by Liverpool with a 49.9% equity stake and the Nordstrom founding family with 50.1%. The transaction marks Liverpool's official entry into the US market, adding Nordstrom's network of over 350 store locations and US$15 billion in annual revenue to its broader corporate footprint.