Mexico's Walmex second-quarter profit beats expectations

Mexico’s biggest retailer, Walmart de Mexico, reported a second-quarter profit on Wednesday that beat expectations, boosted by higher traffic and strong same-store sales in Mexico.

The company, which operates in Mexico and Central America and is known as Walmex, said net profit was 7.96 billion pesos, topping the 7.805 billion pesos that analysts expected according to a Reuters poll.

The profit was down 41 percent from the same quarter last year, due to the company’s sale of its Suburbia clothing stores.

Ads

The company reported revenue of 146.7 billion pesos for the quarter, higher than the year-earlier quarter.

“We’re halfway through the year, and we are still very happy about the momentum we’re seeing,” the company said in its statement to the stock exchange.

In a webcast, Chief Financial Officer Olga Gonzalez said that consumption across the region was decelerating due to higher interest rates and an uptick in inflation, but that Walmex had managed to grow faster than the sector.