What: Falabella has reported a negative performance for the first quarter of 2023.

Why it is important: The retailer is focusing on its efficiency plans and the digitization of its processes in aim to see significant improvements for the remainder of the year.

Falabella reported revenues of USD 3,476 million for the first quarter, a 6% decrease compared to the same period last year. The company’s sales also fell 9% and online sales were down 11%.

Despite the decline in online sales, the sales of its vendors increased by 23% to USD 173 million.

Gross profit contracted by 17%, which the company attributed to a 36% decrease in its department store division and a 24% decrease in its home improvement format.

Losses for the retailer reached USD 76 million, plummeting its triple-digit net income by 186%. Additionally, Ebitda fell 57%.

Falabella’s CEO stated that the company plans to continue to work on the transformation of its business, as it is advancing its efficiency plans and the digitization of its processes.

Falabella posts USD 76 million loss, plummeting 186%