What: El Palacio de Hierro’s third-quarter net income rose 18.1% to 383 million Mexican pesos on revenue up 7.2%, after a year of declining profitability.

Why it is important: Digital sales are growing more than twice as fast as total revenue while the margin holds steady, so the group’s omnichannel investment is adding volume without eroding profitability.

El Palacio de Hierro, one of the largest department store groups in Latin America, returned to profit growth in the third quarter of 2026 after a year of declining profitability. Revenue for the quarter reached 13.957 billion pesos (666 million euros), and the margin was unchanged from a year earlier at 34.6%.

Operating income rose 6.5% to 838 million pesos (40 million euros), a slower pace than net income. Digital sales grew 17.5% year on year, according to company data.

Over the first nine months of 2026, revenue reached 42.606 billion pesos (2.0359 billion euros), up 5.5%. Retail sales, which make up the bulk of the business, grew 4.7%, while the margin was virtually unchanged at 34.5%.

Despite the stronger third quarter, year-to-date profitability remains below 2025 levels. Net income for the nine months totalled 1.648 billion pesos (78.7 million euros), down 4.22%, and operating income fell 5% to 3.156 billion pesos (150.8 million euros).

IADS Notes: The third-quarter rebound reverses the first-half trend, when sales rose 4.65% but net income fell 9.46%, with second-quarter net income down 3.56% (Modaes, August 2026). Across the region, the five largest Latin American department store groups grew combined first-half revenue by just 2.3%, against 7% a year earlier, with El Palacio de Hierro's profit down 3.5% while Liverpool's rose 25.3% (Modaes, September 2026). The third quarter turned that comparison around: Liverpool grew revenue by 2.2% and widened its gross margin to 42.8%, but its net profit fell 14.5% under Nordstrom acquisition accounting (as Modaes reported in October 2026). El Palacio de Hierro's digital growth has eased from the 22% recorded over 2025 (Modaes, March 2026) but still far outpaces total revenue. It is backed by an omnichannel programme that includes an e-concession model for digital luxury, fast delivery and new payment options (Fashion Network, May 2026).

El Palacio de Hierro returns to profit growth with an 18% rise in third-quarter net income