Chilean Falabella slowsdown in the first half: sales up 2.4% but profits plummet

Falabella closes another period in double speed. The biggest department store group in Latin America ended the first half of its fiscal year with sales on the rise but its net benefit on the low.

Between January and June, Falabella scored a revenue of 233.9 million dollars, 30% less than the same period last year. The ebitda of the group dropped 1.1%, up to 825 million dollars.

Sales of the Chilean giant, on the other hand, arrived at 6.3 billion dollars, a rise of 2.4% compared to the same period last year. Despite the turn up, Falabella lowered its growth during the second quarter, with an increase of 1.9% in its sales between April and June, compared to the 2.5% rise in the first quarter of its fiscal.

Falabella increased its sales in almost all its international markets

The company stated that the weak performance is because of the currency exchange. In the first half, the Chilean department store giant increased its sales in almost every international market, except for Argentina, where its revenue dropped 18.7%.

In Brazil, the company grew 18.1% during second quarter and in Peru and Colombia the group increased 7.9% its sales. Falabella continued to reinforce its omnichannel strategy. During the period, the group added a click&collect service in some of its stores, that allows clients to pick up its online orders in seconds through a QR code. At the end it first half, Falabella counted with 65 click&collect centers in its Chilean and Peruvian stores.