What: Ripley’s net profit fell 36% in Q1 2026 as Chilean retail sales declined due to lower tourism, while banking and e-commerce helped offset the downturn.

Why it is important: Ripley’s results highlight the risks of relying on tourism and the value of a diversified business model and digital transformation in volatile markets.

Ripley reported a 36% drop in net profit for the first quarter of 2026, with Chilean retail sales declining 9.3% as the slowdown in tourism weighed heavily on performance. While overall sales rose 2.3% to 506.7 billion Chilean pesos, this growth was driven primarily by the banking business, which posted a 10.1% increase, and by strong momentum in Peru, where retail revenues grew 16.8%. The company’s profitability was further impacted by unfavourable exchange rates and higher corporate tax expenses, contrasting sharply with the record profits and robust growth achieved in 2025. Despite the retail setback, Ripley’s strategic focus on a more selective, profitable e-commerce model paid off, with marketplace sales up 17.9% year-on-year. These results underscore the importance of diversification and digital transformation for Latin American retailers facing external shocks and shifting market dynamics, as well as the need to balance traditional retail with financial services and online channels to sustain resilience and growth.

IADS Notes: Ripley’s first-quarter 2026 results reflect a sharp 36% decline in net profit and a 0.6% drop in retail revenue in Chile, underscoring the vulnerability of the business to external factors such as reduced tourism and unfavourable exchange rates. This downturn contrasts with the company’s record-breaking performance in 2025, when Ripley doubled its profits and achieved robust growth across retail, banking, and real estate, particularly in Peru (Perú Retail, March 2026; Modaes, December 2025). The divergence between retail and banking performance is notable, with banking driving overall revenue growth while Chilean retail sales falter. The company’s strategic shift toward a more selective and profitable e-commerce model, highlighted by a 17.9% increase in marketplace sales, aligns with broader sector trends of digital transformation and operational efficiency (Modaes, September 2025; March 2026). Despite the current challenges, Ripley’s diversified business model and ongoing investments in omnichannel expansion and technology have previously enabled it to outperform regional peers, demonstrating the importance of adaptability and innovation in Latin American retail.

Ripley sees profits shrink by 36% and retail sales decline due to tourism