What: El Puerto de Liverpool's third-quarter net profit fell 14.5% as acquisition accounting for Nordstrom offset higher revenue, wider margins and stronger operating profit.

Why it is important: Without the Nordstrom acquisition effects, adjusted net profit would have grown, so the profit decline reflects deal accounting rather than weaker trading.

El Puerto de Liverpool, owner of the Liverpool and Suburbia department store chains, grew third-quarter revenue by 2.2% to 49.115 billion pesos. Liverpool and its boutiques increased sales by 1.5% (0.8% like-for-like), while Suburbia's revenue slipped 0.1% (−0.5% like-for-like). Digital penetration reached 30.3% at Liverpool and 7.4% at Suburbia. Financial income rose 6.9% and real estate income 16.3%.

Profitability improved despite cautious consumer spending, particularly on clothing and accessories. Consolidated gross margin widened to 42.8% from 40.6%, helped by a better sales mix, promotional discipline and lower import costs. Operating profit climbed 10.1% to 5.318 billion pesos and EBITDA 8.5%, with the EBITDA margin reaching 14.1%.

Net profit attributable to shareholders fell to 3.382 billion pesos. Purchase price allocation adjustments and acquisition costs cut Nordstrom's contribution to 341 million pesos, against 1.141 billion pesos a year earlier; excluding these effects, adjusted net profit would have risen 5.8%. Over the first nine months, revenue grew 1.2% and consolidated net profit 9.2%.

The group is working with Primark on its rollout plan for Mexico, and its network now includes 76 Liverpool Express stores, up from 59, and 174 boutiques, up from 135.

IADS Notes: The drag from Nordstrom on Liverpool's reported profit contrasts with the US retailer's own trading: less than a year after its $6.25 billion take-private by the Nordstrom family and Liverpool, Nordstrom had returned to pre-pandemic revenue of $15.8 billion (according to BoF in April 2026). The third-quarter margin gains continue the course Liverpool set over the summer, when it lowered its full-year same-store sales guidance and chose to protect gross margin and inventory over discounting, with clothing the hardest-hit category (Modaes, September 2026). Second-quarter results had already shown commercial gross margin up 140 basis points, digital penetration of 32.3% at Liverpool, two points above the third-quarter figure, and financial services and real estate growing faster than retail (Press Release, August 2026). That diversification has since widened to personal loans, insurance, a savings product and in-store services such as nail salons, as Liverpool seeks to offset weaker discretionary spending (as Fashion Network reported in September 2026). The Primark partnership, presented in September as an extension of Liverpool's brand-licensing activity following its takeover of Dockers' Mexican distribution, now has a target of being finalised before the end of 2026 (WWD, September 2026).

Liverpool's third-quarter net profit falls 14.5% as Nordstrom acquisition costs offset margin gains