Executive Summary

• Falabella reported 4Q15 net revenues of CLP$2.4 trillion, up 6.6% year over year and in line with the consensus estimate. Bloomberg reported the company’s EPS as CLP$83.80 for 4Q15, slightly below the consensus estimate of CLP$84.66 but up 11.0% year over year.
• Comps increased in Chile and Argentina across all stores, including department stores, home improvement stores and supermarkets, though they decreased in Peru and Brazil. Colombia saw mixed results, with comps increasing by 12% for home improvement stores, but falling by 6% for department stores.
• Falabella opened 13 new stores in Latin America and one shopping center in 4Q15. The company plans to invest US$4.0 billion during 2016–2019 to open 10 new shopping centers and 131 new stores, grow its omni-channel operations, increase its selling area, and remodel its existing stores and shopping centers.