What: Falabella’s profit tripled and revenue grew by 9% in 2025, driven by asset revaluation, operational improvements, and strong retail performance.

Why it is important: Falabella’s success underscores the importance of diversified business models and regional investment for resilience in Latin American retail.

Falabella closed 2025 with record financial results, achieving a 9% increase in revenue and tripling its net profit, largely due to the revaluation of its real estate assets and robust operational performance. The company’s retail division was a key driver, benefiting from improved inventory management, reduced promotional activity, and enhanced profitability in its online channel. Non-banking businesses also contributed significantly, with revenues rising 10% year over year. Falabella’s EBITDA climbed by 34%, reflecting strong gross profit growth and disciplined cost control. The group’s strategic focus on integrating traditional and digital retail formats, along with its expansion in Peru and Chile, further strengthened its market position. Looking ahead, Falabella plans to invest $900 million in 2026, targeting new store openings, renovations, technology, and logistics, and restoring pre-pandemic investment levels. This approach not only supports continued growth but also reinforces Falabella’s leadership and resilience in the competitive Latin American retail landscape.

IADS Notes: Falabella’s 2025 results and investment plans are supported by Modaes reports from February, May, January, and September 2025–2026, which highlight the group’s consistent profit and revenue growth, operational improvements, and commitment to expanding both physical and digital infrastructure across Latin America. These strategies illustrate how diversified business models and regional investment underpin resilience and sustained success in the sector.

Falabella grows by 9% in 2025 and triples its profit