Wal-Mart de Mexico: 2Q26 — Soft Results And Downward Guidance Revision - Yet, No New News

Research evidence excerpt

Wal-Mart de Mexico: 2Q26 — Soft Results And Downward Guidance Revision - Yet, No New News

5-11) 4950-2901

EBITDA margin slightly below last year’s level, reflecting a slower-than- giovanni.vescovi@jpmchase.com

anticipated recovery in consumer demand. The updated outlook can be viewed Banco J.P. Morgan S.A.

against our full-year estimates of net sales growth of 2.8% and consolidated

EBITDA margin of 10.1% vs. 10.2% last year. New store contribution of 1.6%

remains in line with the Walmex Day guidance range of 1.5%–1.7%.

Management also confirmed the first reduction in working hours will begin in

January 2027, following productivity initiative testing across the network.

• 2Q26 operating results in a nutshell. Consolidated net revenues of

Ps.250.9bn grew 2% y/y (+1% vs. JPMe, -0.1% vs. consensus). Gross margin

contracted 16bps y/y to 24.0% (-35bps vs. JPMe), as price investments in

Central America were only partially offset by new businesses contribution

from Walmart Connect, Bait and Financial Services. SG&A grew 2% y/y (-2%

vs. JPMe), representing 17.4% of revenues, with growth investments in new

stores, eCommerce and new businesses adding 80bps, partially offset by run-

rate efficiencies; management guided full-year SGA growth of low single

digits in constant currency terms. EBIT reached Ps.17.0bn, down 1% y/y (+4%

vs. JPMe). EBITDA was Ps.23.6bn, up 1% y/y (+3% vs. JPMe, -0.4% vs.

consensus), with EBITDA margin contracting 12bps y/y to 9.4% (+18bps vs.

JPMe).

• Mexico. Sales of Ps.209.2bn grew 3% y/y (-0.2% vs. JPMe). SSS reached 1.8%

y/y (-6bps vs. JPMe), outperforming ANTAD self-service and club SSS by

180bps, with ticket growing 3% y/y while traffic was negative at -1.1%;

management noted some benefit from World Cup-related general merchandise