El Palacio de Hierro achieves 12% revenue growth in H1 2025, with 19% profit increase
What: El Palacio de Hierro reports strong H1 2025 results with revenues up 12% and profits rising 19%, as new CEO Eléonore de Boysson takes helm of the Mexican luxury retailer.
Why it is important: The strong financial results validate El Palacio de Hierro's business model, which has consistently outperformed the broader retail sector through balanced channel development.
El Palacio de Hierro has demonstrated robust performance in the first half of 2025, with revenues reaching USD 1.47 billion, marking a 12% increase from the previous year. The company's net profit grew by 19% to reach USD 75 million, while EBITDA showed a 14% improvement to USD 216 million. Digital operations have been particularly successful, with online sales growing 27% compared to the same period in 2024. This performance significantly exceeds industry averages, as ANTAD data shows same-store sales growth of just 3.2% in the retail sector and 6.1% in the department store segment. The results come as the company undergoes a leadership transition, with Juan Carlos Escribano retiring after a decade of service and Eléonore de Boysson stepping in as CEO. The company's strong performance has been recognized by Fitch Ratings, which reaffirmed its AAA rating, citing El Palacio de Hierro's strong market position and conservative financial profile.
IADS Notes: El Palacio de Hierro's H1 2025 performance builds upon a series of strategic initiatives implemented throughout 2024-2025. In February 2025, the company reported 11% revenue growth to USD 3.2 billion for 2024, with digital sales growing 28%. The successful launch of its León flagship store in September 2024, featuring over 200 luxury brands across 35,000 square meters, demonstrated its commitment to physical retail excellence. The May 2025 appointment of Eléonore de Boysson as CEO marked a historic moment as the company's first female chief executive. These developments, combined with the implementation of next-generation POS solutions across 450 points of sale in January 2025, showcase how El Palacio de Hierro has successfully balanced technological innovation with traditional retail strengths.
