El Puerto de Liverpool SAB, Mexico’s biggest department store, survived last month’s stock meltdown to return to near-record levels, showing further evidence that retail sales and consumer credit are the bright spots in a sluggish economy.
The company, named after the Port of Liverpool when it imported merchandise from the English city in the 19th century, had the fourth-biggest stock gain in the country’s benchmark index this year, after beating analysts’ sales estimates for four straight quarters.
With the 33 percent share increase so far in 2015, Liverpool trades at 31.5 times earnings, close to the average among its peers, data compiled by Bloomberg show. Still, the rise may not be sustainable, according to Signum Research analyst Cristina Morales. The weaker peso means imported products are getting more expensive and it may force Liverpool to raise its prices, driving some consumers away, said Morales, who recommends holding the stock.