October 22, 2018 / 10:49 PM / 10 months ago

UPDATE 1-Mexico's El Puerto de Liverpool Q3 net profit rises on firmer sales

(Adds details from earnings report)

MEXICO CITY, Oct 22 (Reuters) - Mexican retailer El Puerto de Liverpool on Monday reported a 52.3 percent jump in third-quarter net profit compared with the year-earlier period, boosted by both higher traffic and larger transactions at its core department store chain.

The company said net profit was 1.9 billion pesos ($102 million) between July and September this year, while revenue was 29.2 billion pesos.

Same-store sales at Liverpool department stores rose 6.3 percent compared with the year-earlier quarter. The company’s clothing chain Suburbia saw an even stronger performance, with same-store sales rising 11.7 percent.

The company next year will begin using a 200 million peso fund to convert its Fabricas de Francia stores into those two formats, it said in an earnings report. Analysts say the strategy, announced in September, is likely to help the retailer capture the higher margins of the Liverpool and Suburbia stores.

Analysts had said ahead of Liverpool’s earnings release that net profit growth was likely to benefit from an easy comparison with the previous year, when Liverpool registered extra costs to handle damage from earthquakes that hit Mexico in September.

The company said on Monday it recovered 94 percent of quake-related losses through insurance coverage. ($1 = 18.7175 pesos at end-September) (Reporting by Daina Beth Solomon Editing by Dave Graham and Chris Reese)

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