According to data compiled by Bloomberg , the company's shares have rallied 40% since late October, while fourth-quarter earnings beat projections.
Falabella announced in November 2023 that it would begin a process of selling assets, mainly real estate (such as stores and commercial establishments), in order to raise up to US$1 billion and thus lower its debt and strengthen its finances.
After the company's annual shareholders meeting, the company's general manager, Alejandro González, stated that during this year "some important transactions" should continue to be seen, without detailing which assets would be put up for sale.
FALABELLA CONTINUES WITH THE SALE OF ASSETS TO IMPROVE ITS NUMBERS
As reported by Bloomberg , Falabella announced this month that it decided to sell its stake in Falabella Peru to Mallplaza. In this way, the subsidiary of the Solari company would raise about US$300 million through new shares, in order to buy the stake.
“Plaza is perhaps the first concrete step that one sees. Sales of minor assets have arisen, but we continue with some important transactions that should see the light of day this year,” said the CEO.
And the iconic Chilean company seeks to improve its credit indicators, after both Fitch, Feller and S&P lowered the retailer 's ratings, hitting its ability to access financing or even lowering its bonds to “junk” grade.
For this reason, it was decided to begin the asset sale plan, along with a cost cut that also led to the dismissal of workers over several months.
“Falabella's rating or investment grade will be the consequence of returning to historical results, and that is what we are working on,” said González.
IMPROVEMENTS IN THE LANDSCAPE
Now, the outlook appears to be looking brighter for the company, as shares have rallied 40% since late October, while earnings for the final three months of 2023 exceeded projections.
On the other hand, the dollar bonds issued by Falabella maturing in 2023 had a yield of 6.9%, which according to Bloomberg leaves it as “one of the best among all Chilean issuers of corporate bonds in dollars.
And in the digital aspect, falabella.com returned to the characteristic green color of the chain of stores, adjusting and backtracking on the e-commerce strategy that led to having both Falabella, Sodimac and Tottus on a single platform.
In this way, the marketplace and retail teams will be progressively unified, while the home improvement and supermarket sector (with the Sodimac and Tottus brands, respectively), would have more individual prominence with websites focused on the specialist proposal.
