El Palacio de Hierro maintains its Fitch Ratings AAA grade

What: Fitch Ratings reaffirms El Palacio de Hierro's AAA rating in Mexico, citing the retailer's solid financial position and stable outlook for investors and financial markets.

Why it is important: The rating affirmation validates El Palacio de Hierro's successful business model, combining luxury retail leadership with strong financial management during a period of significant market expansion.

Fitch Ratings has renewed El Palacio de Hierro's AAA rating, the highest possible in Mexico, recognizing the company's robust financial foundation and strategic market position. The rating reflects the retailer's differentiated commercial strategy in the luxury segment, supported by a flexible financial structure with stable margins and strong liquidity. Don Alejandro Baillères, Chairman of Grupo Palacio de Hierro, acknowledged this achievement as recognition of the more than 10,000 employees' contribution to the company's strength and stability. The rating assessment particularly noted the company's solid position in the luxury segment and its successful growth trajectory, which has been marked by continuous expansion and transformation while maintaining financial discipline. This achievement reinforces El Palacio de Hierro's commitment to building a prosperous future while delivering unique luxury experiences to its customers.

IADS Notes: El Palacio de Hierro's AAA rating reaffirmation comes amid strong operational performance throughout 2024-2025. As reported in April 2025, the company achieved 12% revenue growth and a 30% operating profit increase in Q1 2025, reaching USD 650 million in sales. This follows February 2025's announcement of 11% revenue growth to USD 3.2 billion in 2024, with digital sales growing 28%. The company's strategic investments, including the successful launch of its León flagship store featuring over 200 luxury brands across 35,000 square meters, demonstrate its ability to expand while maintaining financial strength. The rating also acknowledges El Palacio de Hierro's successful digital transformation, evidenced by January 2025's implementation of next-generation POS solutions across 450 points of sale, and its recognition as the world's second-best department store.