Liverpool operates more than 60 boutiques in Mexico, including Gap and Banana Republic, as well as Williams Sonoma, Pottery Barn and West Elm. For the latter, it has exclusivity.
“It is a royalty agreement, we are going to have the complete management of the operation in Mexico so we decide the merchandise that we buy, we also decide the price of the promotional activity, so it is basically more or less the same agreement that we have for the brands of William Sonoma”, Enrique Güijosa, director of administration of the company, explained in a conference with analysts.
The manager announced that there is no commitment to open a certain number of stores, which will have an extension of no more than 1,500 square meters.
Revenues in the toys and games segment in Mexico amount to 4,560 million in 2023. The market is expected to grow 5.69% annually (CAGR 2023-2027, according to Statista.
Liverpool beats high prices and interest rates
In the first quarter of the year, the revenues of the owner of Liverpool and Suburbia rose 16.5% to 37,569.5 million pesos, while those of the commercial division, which considers the sales of departmental chains, rose 15.4% to 32,953.2 millions of pesos.
The operating flow (or Ebitda) for this period reached 5,189 million pesos, 5.3% above the 2022 figure, while the net profit of the controlling party was 2,143 million pesos, 4% less than the previous year, according to the financial report.