El Puerto de Liverpool

Good morning everyone. My name is Daniela and I will be your conference operator. All lines have been placed on mute to prevent any background noise. This is Liverpool's second quarter 2026 earnings call. There will be a question and answer session after the speaker's opening remarks and instructions will be given at that time. Today we have with us Mr. Gonzalo Gallegos, Chief Financial Officer, Mr. Jose Antonio Diego, Treasury and Investor Relations Director, Mr. Enrique Griñan, Investor Relations Officer, and Ms. Nibia Garrido, Investor Relations Coordinator. They will be discussing the company's performance as per the earnings release for the second quarter of 2026, which was issued yesterday, Monday, July 27th. If you did not receive this report, please contact Liverpool's IR department and they will email it to you or you can download it at the IR website. To ensure focused discussion, this call is for investors and analysts only and we will be taking questions exclusively from them. Any forward-looking statements made during this earnings call are based on information that is currently available. They are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions discussed today. This may be due to a variety of factors, including the risks outlined in El Puerto de Liverpool's most recent annual reports. Please refer to the disclaimer in the earnings release for guidance on this matter.

I will now turn the call over to Mr. Gonzalo Gallegos.

Good morning and thank you for joining us today to discuss our second quarter results. The second quarter unfolded against a challenging operating environment. Consumer demand remained soft, competitive intensity increased across several categories, and discretionary spending continued to be concentrated around key promotional events. The FIFA World Cup also temporarily affected consumer spending patterns, adding further pressure to consumer demand across most categories, particularly apparel. Despite these conditions, our diversified business model enabled us to navigate these headwinds while continuing to deliver resilient results. Throughout the quarter, we remained disciplined in executing the priorities we established at the beginning of the year, balancing commercial competitiveness and profitability while continuing to invest in the strategic investments that will strengthen our long-term position. All three of our business segments contributed to consolidated revenue growth. Our financial services and real estate businesses continue to deliver strong growth while retail posted positive growth despite the challenging operating environment. We also made further progress on the stabilization of our logistics network and expansion of our real estate portfolio.

Let me now walk you through our second quarter results in more detail.

During the second quarter, consolidated revenue reached 57.3 billion pesos, representing a year-over-year growth of 1.5%. All three business segments contributed positively to this performance. Financial services once again delivered the strongest growth, with revenues increasing 9.9%, followed by real estate at 8.6%, while retail also delivered positive growth of 0.4%. Turning now to a retail business, the operating environment remains challenging, with a sluggish macroeconomic backdrop, driving cautious consumer behavior, and a greater concentration of discretionary spending around key promotional events, including Mother's Day, Wholesale, and Father's Day. Consumer spending was also temporarily affected by the World Cup, resulting in softer demand across most categories. while sporting apparel and TV and video benefited from this event. Apparel was particularly affected, especially Suburbia, given its greater exposure to the category. Against this backdrop, we remain focused on executing the priorities we established at the beginning of the year. The work we have done over the past several quarters to improve the health of our inventory together with the benefit of a stronger peso gave us greater flexibility in managing our commercial strategy. This allowed us to maintain positive sales growth, execute impactful promotional events, and expand merchandise margins despite the softer demand environment. Our World Cup campaign is a good example. While the tournament temporarily shifted consumer spending away from several categories, we successfully captured the increased demand for sports-related merchandise. At Liverpool, sporting apparel and TV and video grew 60% and 28% respectively. We sold approximately 345,000 Mexican national team jerseys, achieving a 98% sell-through, 5 percentage points above Adidas' wholesale average, and generated nearly 300 million pesos in Panini sales. According to Adidas' sell-out data, Liverpool ranked among the brand's top-performing retailers globally. finishing more than 60% above its top-performing European account and just below its top-performing US account. Equally important, the operational challenges associated with the startup of our new logistics facility, which affected first water performance, have now been fully resolved. Merchandise availability normalized at the beginning of the quarter, allowing commercial performance to once again be primarily driven by consumer demand and purchasing patterns, rather than supply chain constraints. As a result, consolidated retail sales grew 0.4% or 1.8%, excluding discontinued operations, while same-store sales increased 0.7%, representing an improvement from the 2% decline recorded in the previous quarter. Performance remained mixed across formats, with Liverpool delivering same-store sales growth of 1.7%, driven by a higher average ticket, while Suburbia recorded a 6.4% decline. Performance across our banners reflected the same underlying trends. Although shifting Suburbia's mid-season sales from the first to the second quarter was expected to provide a tailwind to sales, the promotional benefit was more than offset by weaker consumer demand. At the same time, a healthier inventory position reduced the need for clearance activity, lowering the contribution from clearance-driven sales. Suburbia also continued the deliberate repositioning of its motorcycles and mobile phones categories, prioritizing profitability and a healthier sales mix over volume, which also weighed on reported sales growth during the quarter. Despite these headwinds, Liverpool continued to perform better than the broader market. While Liverpool's same-store sales increased 1.7% and top department stores reported growth of 0.9%, while the apparel and footwear segment declined 1.9%, reflecting the challenging industry environment. It is also important to consider the comparison against the prior year. Throughout much of last year, our commercial strategy was focused on accelerating inventory normalization through elevated promotional activity and clearance events. This year, with inventory returning to more normalized levels, our priorities shifted toward disciplined inventory management and gross margin preservation rather than pursuing incremental sales through aggressive discounting. While this approach moderated top line growth, it supports stronger profitability and a higher quality sales mix, which we will discuss in more detail later. Finally, we completed the migration of our e-commerce platform from Oracle ATG to Commerce Tools, marking a major milestone in our unified commerce strategy. This next-generation architecture provides greater scalability, flexibility, and a significantly enhanced consumer experience, while enabling faster innovation across our digital channels. while enabling faster innovation across our digital channels. The transition temporarily weighed on digital GMB growth, reflecting system-related disruptions associated with the migration, some of which continue to affect performance during the quarter. Despite these headwinds, our digital business continues to expand. Liverpool Digital GMB increased 4.8%, with digital penetration reaching 32.3%, an expansion of 55 basis points, while Suburban increased its digital penetration by 15 basis points to 8.7%. We also continue to see healthy growth in customer engagement with active app users, increasing 12.4%. These investments reinforce our commitment to technology, innovation, and delivering a best-in-class unified commerce experience, positioning us well for sustainable long-term growth. Overall, while demand remains soft during the quarter, we exited a period with normalized logistics operations, a healthier inventory position, a strengthened digital platform, and a continued focus on profitable growth, positioning us well for the second half of the year. Turning to profitability, our commercial strategy remained focused on maximizing long-term value rather than pursuing incremental sales through aggressive promotions. As discussed earlier, with inventory levels returning to healthier levels, we prioritized gross margin protection, disciplined inventory management, and a more profitable sales mix over volume. As a result, consolidated commercial gross margin expanded by 141 basis points to 32.4%. The improvement was primarily driven by a stronger peso, which reduced the cost of imported merchandise and the normalization of inventory levels, which allowed us to reduce promotional intensity compared with the prior year, when clearance activity was necessary to accelerate inventory reduction. From an operational perspective, the startup of our Arco Norte distribution center is now behind us. Additional logistics costs were limited to approximately 100 million pesos during the quarter, bringing the cumulative impact to approximately 250 million pesos, fully in line with the guidance provided during our first quarter earnings call. The facility is now operating under normal conditions, with the only significant milestone remaining being the transition of our parcel delivery operation to Arco Norte. While this final migration and a limited number of system optimizations will continue over the coming months, we expect any remaining financial impact to be immaterial. We also continue to strengthen our inventory position. Total inventories increased a modest 1.5% year-over-year, primarily reflecting planned merchandise receipts for the upcoming commercial season. More importantly, we entered the second half with a significantly improved inventory position compared to a year ago, allowing us to operate with greater pricing discipline and lower promotional activity. Turning to our financial services business, performance remained strong during the second quarter, supported by healthy customer engagement and solid growth across our credit ecosystem. During the quarter, we further increased the penetration of our proprietary credit cards through targeted commercial initiatives around key promotional events, reaching 54.2% at Liverpool and 38.4% at Zuburbia. As a result, our active cardholder base expanded to 8.8 million, representing a year-over-year increase of 7.8%. This translated into a 9.5% increase in our gross loan portfolio and a 9.9% growth in financial services revenues. Beyond our traditional credit card business, we also saw solid momentum across our digital financial products, including personal loans, cash advances, office transactions, and our insurance marketplace, further strengthening the breadth of our financial services ecosystem. Turning to asset quality, the NPL ratio stood at 4.7% at the end of the quarter. An increase of 72 basis points versus the prior year, reflecting the expected evolution of our portfolio. We continue to strengthen our allowance for credit card losses, with provisions totaling 2.1 billion pesos during the quarter. An increase of 27% year over year. Importantly, the higher provisions expense was absorbed by the continued expansion of our financial services revenue reflecting our ability to balance portfolio growth, profitability, and fund risk management. As a result, our reserve coverage ratio improved to 11.2%, an increase of 130 basis points compared to the prior year, while NPL coverage remained strong at 2.6 times. As we've discussed over the past several years, the post-pandemic environment provided an attractive opportunity to responsibly expand our customer base. This strategy has allowed us to have millions of new customers while significantly growing our loan portfolio. with expected gradual normalization of NPL levels as the portfolio matures. Going forward, we see a greater opportunity to drive growth by increasing engagement with this large customer base while maintaining a disciplined approach to risk. As a result, our focus will increasingly shift toward balancing growth, profitability, and asset quality through disciplined underwriting, trend portfolio management, and a more balanced growth pace. We believe this approach will support attractive returns while maintaining a resilient credit portfolio over the long term. Turning to our real estate division, performance remained solid during the second quarter. Real estate revenues increased 8.6% year-over-year, while portfolio occupancy improved to 94.1%, an increase of 50 basis points compared to the prior year. These results were also supported by favorable lease renewals, selective repricing initiatives, and the continued optimization of our tenant mix, which helped offset the temporary moderation in food traffic associated with the World Cup and demonstrated the resilience of our real estate portfolio. At the same time, we continue to strengthen the positioning of our shopping centers as destinations for entertainment and community engagement, complementing the traditional retail offering. For example, during the quarter, we hosted initiatives such as the Food Fest of Parisor, creating immersive experiences around the World Cup that attracted visitors, increased customer engagement, and reinforced the relevance of our properties beyond shopping. Turning to our consolidated results, gross margin expanded by 188 basis points year over year to 41.9%. As discussed earlier, this improvement was driven by favorable foreign exchange dynamics, disciplined inventory management, a more selective promotional strategy, and a greater contribution from our financial service business. These factors more than offset the remaining costs associated with the final stages of the ARCO Northrop ramp-up, which, as expected, continued to decline during the quarter. Operating expenses increased 10.6% compared to the prior year, primarily reflecting salary-related increases, higher marketing investment associated with the World Cup, and the increase in loan loss provisions consistent with the evolution of our trade portfolio. EBITDA reached 8.5 billion pesos during the quarter, decreasing 1.2% year-over-year. Evident margin stood at 14.9%, a contraction of 41 basis points versus the prior year, as the benefits from gross margin expansion were more than offset by softer than expected sales growth and the planned increase in operating expenses. Turning to Nordstrom, following the reporting calendar alignment we discussed previously, this quarter reflects a full three-month operating period from March through May. Accordingly, the current quarter is not directly comparable to the prior year period, which only included 10 days of operations. During the quarter, Nordstrom continued to deliver solid operating performance, with revenues increasing 5.9% year-over-year and adjusted EBITDA margin expanded by 58 basis points to 9.7%. Reported net income continued to reflect the incremental non-cash depreciation associated with the purchasing accounting adjustment recorded at the time of the acquisition. Despite this effect, Nordstrom generated net income of $69 million, resulting in a contribution of $807 million to our results of associates. Moving below the operating line, net financial expense totaled $1.9 billion, a 54% decrease versus the prior year, primarily reflecting significantly lower foreign exchange losses as a result of our lower U.S. dollar exposure. Results from associates also provided additional positive contribution during the quarter, improving approximately 1 billion pesos versus the prior year, primarily reflecting the performance of Nordstrom, as discussed earlier, together with a strong recovery at Unicommer. Overall, consolidated net income increased 55% year-over-year to 5.1 billion pesos, reflecting the combined strength of our operating performance, discipline for exchange risk management, and the positive contribution from our associates. Turning to CapEx, we maintain a disciplined approach to investment during the quarter. Capital expenditure... 48% reduction compared to the same period last year, reflecting the completion of the most capital-intensive phase of our logistics transformation while continuing to invest in initiatives that support our long-term growth. Approximately 42% of capex was allocated to stored expansions, remodels, and capital improvements, while 36% was invested in logistics and technology, including the remaining investments in Arconorte logistics platform and our unified commerce capabilities. Turning to cash flow on our balance sheet, operating cash flow reached 3.4 billion pesos on a cumulative basis, reflecting the strong cash generating capacity of the business. We ended the quarter with 21.2 billion pesos in cash and cash equivalents, while net debt to EBITDA remained low at just 0.6 times, providing ample financial flexibility to support our growth strategy. Beyond our operating and financial performance, I would like to highlight a few milestones achieved during the quarter that further reinforced the strength and positioning of our business. First, our financial strength contributed to be recognized by the leading rating agencies. On May 13, Standard & Poor's affirmed our corporate credit rating at BBB with a stable outlook under its Rating Above the Sovereign methodology. Subsequently, on June 2, Fitch Ratings affirmed both our national scale and international credit ratings, also with a stable outlook. This affirmation reflects the resilience of our business model, our disciplined financial management, and the strength of our balance sheet. We also continue to strengthen Liverpool market position and global recognition. During the quarter, the company was included in the Dow Jones Milla Pacifica Alliance Index and recognized in Forbes Global 2000 ranking. In addition, we expanded our GLAM portfolio with six new international brands. Liverpool also received the highest distinction from e-commerce MX2026 for its customer-centric on the channel strategy and was recognized by an international group of department stores as one of the world's leading department stores in retail media. Our general manager of the Liverpool business, Carlos Marin, was elected president of the IGDS, further reinforcing Liverpool's leadership with a global retail industry. Finally, we continue to strengthen our real estate portfolio through the acquisition of the remaining ownership interest in Galerías Metepec, providing us with full control over the properties leasing operations and greater operational flexibility. Before we conclude, let me share a few thoughts on our outlook for the remainder of the year. While the operating environment remains challenging, we remain focused on balancing commercial competitiveness and profitability while continuing to invest in the strategic initiatives that will strengthen our long-term position. Looking ahead, we expect to benefit from more favorable year-over-year comparisons during the second half of the year. However, the macroeconomic environment remains uncertain, consumer demand continues to be soft, and competitive intensity remains elevated. As a result, we believe it is appropriate to align our expectation with current market conditions. Accordingly, for full year 2026, we are revising our Liverpool same-store sales guidance to a range of 2.5 to 3.5%, our suburbia same-store sales guidance to a range of minus 1 to plus 1%, our digital GMB growth guidance to a range of 10 to 12%, Our net loan portfolio growth guidance to a range of 6 to 8% and our EBITDA margin guidance to a range of 14.5 to 15.5%. While we expect to partially mitigate the impact of lower sensor sales through continued merchandise margin improvement, disciplined expense management, and the growing contribution of our financial services business, we believe it is prudent to reflect the software demand environment in our updated profitability guidance. Despite the near-term environment, we remain confident in the long-term fundamentals of the business and our ability to deliver profitable growth. Thank you for joining us today. We appreciate your continued confidence and support. We will now be happy to take your questions.

Thank you. We will now conduct a Q&A session. If you would like to ask a question, please press the raise your hand button located at the bottom of the screen. And if you're connected by a telephone, you can dial star 9. We remind you that all lines have been placed on mute. When it is your turn to ask a question, you will be unmuted. If you have placed yourself on mute, you will need to unmute yourself to ask the question.

We will now pause for questions. Thank you for holding.

Our first question comes from Alexander Namioka at Morgan Stanley.

Hi, everyone. Thanks for taking the question. Just wanted you to explore a bit the second quarter same-store sales performance. I think you covered, but just wanted you to delve a bit into the details here. I mean, the release you mentioned, the FIFA World Cup, boosting sporting apparel and TV sales in the quarter, while the broad apparel segment actually suffered because of the event. Just wanted you to get a better sense here. How should we think about the net effect from the World Cup in this quarter to gauge the performance in the coming quarters here? And also, a bit on the, particularly on the Suburbia guidance, if I'm not wrong here, I think the same-store sales performance for the full year actually implies a pickup in the second half. Just wanted you to confirm what exactly are the drivers? How much is this being driven by macro? How much is this coming from the micro performance here? Thank you.

Thank you, Alexander.

Let me start with the World Cup first. It is difficult to isolate the precise impact because the World Cup affected consumer behavior in different ways. Overall, we believe it had a net negative effect on the business. While there were some bright spots like sports apparel and TV and video, it also reduced traffic across most other categories, particularly in apparel. So the positive contribution from sports-related categories was more than offset by weaker performance overall. Now, let me talk about Suburbia. You are right that Suburbia underperformed the broader market. However, it is important to recognize that several company-specific factors affected the comparison. While the shift of the mid-season sales into the second quarter was expected to provide a benefit, it was more than offset by weaker consumer demand. In addition, with inventory in a much healthier position, we intentionally reduced the clearance activity compared to last year, and we continued repositioning our motorcycles and mobile phone categories in order to improve profitability. So, even though we are not satisfied with the level of sales growth, we are very satisfied with improvement in gross margins. Also, with our cost control and the overall profitability of the business. In fact, Suburbia put early in profit for the second quarter improved versus last year, despite the weaker sales. So, for the same store sales, headline wasn't what we expected. We believe it doesn't fully reflect the underlying performance of the business. Now, looking ahead, regarding suburbia, as you remember, last year, inventory levels normalized throughout the third quarter. So it will have a more comparable base regarding clearance sales and also will have a benefit of weaker cuts. And that's why we expect the Suburban overall performance to be better in the second quarter. I'm sorry, in the rest of the year.

Thank you very much. This has been very helpful. Thank you. Thank you, Alexander.

Thank you. Our next question comes from Ryan Lavin at Barclays.

Hey, thanks for taking our question. So two parts here. So first, digging a little bit more into guidance on the same store sales. What do you guys see as the normalized balance between the ticket and traffic at both formats? And then also looking at the Nordstrom. So the contributions were pretty good this quarter. So looking into the back half, what are you guys expecting from Nordstrom in terms of contribution than any synergies you can find between your core brands and Nordstrom? Thanks.

Thank you, Ryan. So let me start with the guidance. Let me put it in the context of what is our forward outlook for the month. So overall, our view hasn't changed a lot since the beginning of the year. We continue to see a cautious consumer environment with some demand in several categories and overall spending concentrated around promotional events. Now, during the second quarter, the World Cup added another layer of complexity as it affected traffic, particularly in Apara. While that impact was temporary, we continued to operate in a low-growth environment with soft demand. So, we have incorporated that view into our updated guidance for the full year. we will continue to focus on protecting margins maintaining discipline expense management and leveraging the strength of financial services and real estate rather than pursuing incremental sales through more aggressive promotions so if we have to combine there are some internal things that we expect to maintain during the second quarter like the promotional environment and there are some external effects and the overall macro condition that we have to see how it plays out. Now, talking about Northam, we're certainly happy with the development of the business. As you know, we don't provide a guidance on that, but we certainly... want to build on the momentum created so far. So we're happy with the result and management we believe is doing a great job maintaining sales growth and margin improvement. The kind of synergies from a financial standpoint We think Nordstrom is a long-term investment, so the financial benefits associated with synergies will take longer to materialize. So we expect the synergies to build over time as we continue optimizing things like private bonds. private label development, sharing some best practices like in e-commerce and customer service.

Okay, that's perfect. I'll pass it along. Thank you for the call.

Thank you, Ryan.

Thank you. Our next question comes from Gabriela Leme at Goldman Sachs.

Hi, thank you for taking my question. I would like to explore a bit more the financial division. You have consistently described that rising NPLs as part of your strategy to expand the risk appetite and return to pre-pandemic levels, but now with MSR sales somewhat soft at both banners and consumers clearly pulling back on spending, is there any scenario where you would consider moderating the pace of credit expansion? And then my second question related to the expense pressures into the remaining of the year. How should we think about your planning to drive efficiencies and balance margins? Is there any specific initiatives underway? And how should we think about labor expense pressure going forward? Thank you.

Thank you, Gabriela. Let me talk about recurring business first. uh we are let me start by saying that we're comfortable with the current trajectory of the portfolio as we've discussed over the past several years the increase in MPLC is a natural consequence of the strategy we implemented to expand our customer base following the pandemic the evolution we've seen so far has been consistent with our expectations so looking ahead we do not expect the we We do expect the portfolio to enter a more mature phase. As our customer base has reached greater scale, we see an opportunity to grow by increasing customer engagement rather than through additional risk appetite. So our focus will increasingly be on balancing growth and profitability and asset quality rather than taking on additional risk appetite. Having said that, we're not focused on a specific NPL target. Rather, we expect the portfolio to evolve with credit quality remaining consistent with our long-term objectives. Now, talking about overall expenses and margins, let me talk about margins first. margins benefited from both structural and temporary factors. So a stronger peso provided a meaningful tailwind, while overall healthier inventories and a more disciplined promotional calendar improved gross margins. We would not expect the same level of expansion every quarter, but we do believe that business is in a better position than it was a year ago. And regarding overall expenses, we are looking at overall profitability with discipline expense management rather than broad cost reductions. So we will continue to invest on our strategic priorities while maintaining tight control over discretionary spending and driving productivity improvements across the organization.

Perfect. Thank you.

Thank you, Gabriela.

Our next question comes from Joe Thomas at HSBC. Joe, you are on mute. Could you give it a go? There you go.

Thank you. Apologies for that, and good morning, and thank you for taking the questions. I had a couple of questions, please. First of all, on real estate, there is an expansion in occupancy year on year, but it's declined quarter on quarter. I'm just wondering how you're seeing that business, why you think there's been a sequential decline, and how – Thank you, Thomas. Thank you, Thomas.

Let me talk about Real Estate first. We believe our retail business has done very good and we're very happy with the overall occupancy. As you know, we try to balance occupancy with having the right tenant mix to make the shopping centers attractive for the customers, generate food traffic and engagement and a sense of community beyond the traditional retail offering. Maybe the KPIs that you're seeing is because as we have added on additional meters, particularly behind the METAPAC expansion, we may have some distortions regarding overall occupancy throughout the quarters. But overall, the increase in occupancy has been consistent throughout the several quarters. So overall, we're very happy with the performance. And together with financial services, it is helping us offset the lower performance of our retail business. Now, talking about financial services, as you know, as I mentioned earlier, we have had several years of appetite a risk expansion so we have taken on millions of additional customers so then the way we we think about it is that um we we have an opportunity to keep going to keep uh having additional financial services revenue, not only with our traditional credit card business, but also with some other financial products like personal loans, cash advances, office transactions, insurance, other type of financial services.

Thank you. And just coming back to the real estate business, What indications are you getting on the financial health of your tenants in this difficult environment?

Well, we don't discuss individual tenants' performance, but overall what I can share with you is that overall their performance is similar to ours. on the retail side, but given the variety of tenant mix that we have, the different tenants in different industries have different type of performance.

Okay, thank you. Thank you.

Thank you. Our next question comes from Ricardo Encida at GBM.

Hello, Gonzalo. Thank you for the space for questions. Ricardo Alfira from GVM. Two questions. First of all, with current leverage levels and cash materially higher year over year, How are you prioritizing capital allocation across growth, balance sheet strength, and shareholder returns? And then moving over to the digital business, GMV growth slowed down significantly last year, attributable to e-commerce platform migration. Could you provide more color in this platform? What leverage does it provide to reaccelerate digital growth, and when should we expect to observe such benefits? Thank you.

Thank you, Rakanam. So let me talk about capital allocation first. Our capital allocation follows a bit the size of a business. So our number one priority is a retail business, the second is the financial services, and the third is our real estate business. Regarding dividend, Every year, we take a look at our dividend policy. I have a lot of discussions whether the current dividend policy is appropriate or not. As part of those discussions, if you take a look at the last few years, we have consistently grown the percentage of the prior year's a profit return to the shareholders as part of our dividends. So overall, we think this conservative approach provides a lot of flexibility to support the growth of a business. So we intend to keep that strong balance sheet. Now, let me talk a bit more about our digital business. The migration of the e-commerce platform had a higher impact on digital GMB than we initially expected, as there were some system-related disruptions that affected the performance during the quarter. The migration itself has been completed, but we're still working through the stabilization of certain processes and expect those efforts to continue over the coming weeks. Looking ahead, we expect the impact to decrease during the third quarter. So even though we may still face some near-term effects, the new platform provides a much stronger foundation for discoverability, innovation and customer experience. which is important for the long term.

Thank you very much. Very clear. Let me just clarify if I understood correctly. So on the impact on the GMV for the following quarters, we should expect maybe a sequential recovery, maybe not quite to normalized levels yet, but not quite of a slowdown as we saw this quarter.

Yes, you are correct. We expect digital growth to reaccelerate during the second half of the year with a meaningful improvement beginning in the third quarter. So while some stabilization work continues, we expect the migration-related disruptions to decrease significantly in these weeks. And obviously the pace of improvement will also depend on the overall consumer environment, which... as I said, remains soft.

I appreciate it. Thank you very much. Thank you.

We will pause once more to see if there are any other questions. There are no further questions at this time, so that concludes our question and answer session. I would now like to hand the call back over to Gonzalo Gallegos for some closing remarks.

Thank you for joining us today and for your continued support. We look forward to speaking with you in the next quarter. Have a great day.

That concludes today's call. You may now disconnect.