What: El Palacio de Hierro grew first-half sales by 4.65%, but net income fell 9.46% as profitability remained under pressure.

Why it is important: El Palacio de Hierro’s performance highlights the growing importance of credit and real estate divisions in supporting diversified department store groups.

El Palacio de Hierro continued to grow sales in the first half of 2026, but profitability remained under pressure. The Mexican department store group reported first-half sales of 28.648 billion pesos, up 4.65% year on year, while net income fell 9.46% to 1.264 billion pesos. Operating income also declined, dropping 8.63% to 2.317 billion pesos. The second quarter showed a similar pattern. Revenue rose 5.05% to 15.374 billion pesos, but net income fell 3.56% to 842 million pesos and operating profit declined 6.11%. The results suggest that El Palacio de Hierro is maintaining commercial momentum but facing pressure on margins and operating profitability. The commercial division, which remains the group’s main business, grew 4.4% in the second quarter. However, supporting businesses expanded faster, with the credit division up 12.7% and real estate income up 5.9%. The company has been led by Eléonore de Boysson since June 2025.

IADS Notes: El Palacio de Hierro’s first-half results show that the Mexican luxury department store continues to grow sales, but profitability is becoming harder to protect. In August 2026, Modaes reported that first-half sales rose 4.65% while net income fell 9.46%, with second-quarter revenue up 5.05% and credit and real estate growing faster than the core commercial division. This follows Fashion Network’s May 2026 coverage of first-quarter revenue growth of 4.2% across commercial, credit and real estate, already accompanied by margin pressure. Fashion Network’s June 2026 report on leadership changes under Eléonore de Boysson showed the company strengthening store sales, supply chain and HR leadership to improve operational excellence and agility. 

El Palacio de Hierro’s sales continue growing, with reduced profitability