Falabella earnings rise as Latin American expansion continues
SANTIAGO Aug 25 (Reuters) - Latin American retailer Falabella reported revenues and net profits both up around 10 percent in the second quarter compared to a year ago, as its diversified operations buffer it from a slowdown in many of its markets.
The company, which operates in Chile, Argentina, Peru, Colombia, Brazil and Uruguay and runs department stores, home improvement chains and a credit card and banking business, reported net profit for the quarter of 115 billion Chilean pesos ($163 million), in line with forecasts, on sales of $3.1 billion.
Falabella cited the consolidation of its Peruvian home improvement chain Maestro and other new stores for driving sales.
At the same time, the company said it shored up margins by buying conservatively and cutting end-of-season discounting, while a reduction in the Chilean central bank's benchmark interest rate boosted its banking business. ($1 = 706.06 Chilean pesos) (Reporting by Rosalba O'Brien; Editing by Bernard Orr)
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