The profit of Falabella would have dropped in the second quarter with a high basis of comparison

The profit of the Chilean retailer Falabella in the second quarter it was 4.7 percent lower than a year ago, due to a high comparative base and a weak performance of the department store department.

Falabella, one of the largest companies in Latin America, would have a profit of $ 188.3 million for April and June, according to the median of estimates from five brokers.

After the Reuters survey, respondents stressed that the result would be affected in relative terms by a millionaire compensation received by the company in the second quarter of 2017 after serious flooding occurred in Peru.

Meanwhile EBITDA (profit before tax, interest, depreciation and amortization) would have reached 295,147 million pesos, a stable level compared to the same period last year.

"We plan a flat quarter, with the weakness in department stores remaining at the sales level, which would be offset by a good momentum from Sodimac Chile and the activities in Peru"Santander GCB said in a report.

Group sales Falabella, with operations in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Uruguay, would have risen 3 percent, to the equivalent of 3,501 million dollars in the three months to June.

With the quarterly estimate, Falabella it would accumulate a profit of $ 363.3 million in the first six months, a year-on-year drop of 3.4 percent.

In the midst of a challenging view of the market, the group's shareholders last week approved a capital increase of nearly $ 760 million to help the company advance in its digitization process and face the arrival of global giants to the region.

Source: Reuters

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