Falabella grows 2.8% in first quarter but profit drops by 1.9%

Falabella goes through a fall in profits. The Chilean group, the largest Latin American retailer in the sector, ended the first quarter of 2018 with a decrease of 1.9% in net profit, to 113,416 million pesos (151.5 million euros).

The department store company, however, grew its turnover in the first three months of the year. Revenues stood at 2,188,435 million pesos (2,924.2 million euros), which represented an increase of 2.8%.

Earnings before interests, taxes, depreciation and amortization of the Chilean group in the first quarter was 296,069 million pesos (395.6 million euros), 3.7% more compared to the same period of the previous year.

On June 1, Sandro Solari will leave Falabella's management after 23 years within the group

Falabella ended the first quarter with 494 stores and other retail-related points of sale, nineteen more than in March 2017. Meanwhile, the number of shopping centers went from 40 to 42 during the last twelve months.

As of March 31, the group had 45 large warehouses in Chile, 29 in Peru, 26 in Colombia and 11 in Argentina. In addition, it operates in Brazil and Uruguay with 57 and 3 bricolage shops, respectively.

Next June 1, Sandro Solari will leave his historical position as managing director in Falabella. The executive, brother of the Chilean group’s CEO, decided to leave the management after 23 years linked to the company and six years occupying the same function, but will remain linked to the company.

Solari, who began his professional career in the company as a shoe salesman, led the internationalization process of Falabella, particularly as it expanded to Brazil, Uruguay and soon in Mexico.