By Anthony Harrup
MEXICO CITY--Retailer Wal-Mart de Mexico posted lower first-quarter net profit as expenses rose more than sales, which were limited by the economic slowdown and unfavorable calendar effects.
The unit of Bentonville, Ark.,-based Walmart, known as Walmex, reported profit of 12.32 billion Mexican pesos ($629.4 million) or MXN0.71 a share for the January-March quarter, down 6.6% from the first quarter of 2024.
Sales grew by 6.5% to MXN240.97 billion, helped in part by the depreciation of the Mexican peso. Same-store sales grew 1.4% in Mexico and 1.9% in Central America.
General expenses rose 12% in the first quarter, affected by investment in store expansions, distribution centers and technology, as well as higher labor costs. Operating profit fell 1.5% and earnings before interest, taxes, depreciation and amortization, a measure of profitability, grew 1.9% to MXN25.09 billion.
Walmex executives said in a webcast presentation that the quarter was challenging given tough macroeconomic conditions and the shift in the Easter holiday to the second quarter, and that the company expects sales to pick up pace in the following quarters.
The negative calendar effect, which included an extra leap-year day in 2024, had an impact on sales growth of 2 percentage points in the first quarter. Chief financial officer Paulo García said the company is maintaining its guidance of 6% to 7% sales growth for all of 2025.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
April 29, 2025 18:02 ET (22:02 GMT)
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