Walmart’s Mexico and Central America unit reported a 10% decrease in net profit, falling below analysts’ expectations due to a slower recovery in consumer spending. Despite this, sales rose 8% to 246.25 billion pesos in the second quarter, with Walmex opening 25 new stores during the period.

CEO Ignacio Caride expressed satisfaction with the company’s strategic progress but disappointment in current results. Analysts had anticipated a strong quarter for retailers, especially with the annual Hot Sale event and profit-sharing bonuses boosting consumer spending. Walmex remains optimistic about gradual growth in the second half of the year.

Sales growth was driven by Bodega Aurrera and Sam’s Club, with Walmex’s own brands improving customer perception of prices. A promotional campaign featuring Lilo & Stitch products also resonated with shoppers ahead of the live-action movie release. The company reaffirmed its forecast of 6-7% revenue growth for 2025.

Read more at Yahoo Finance: Walmart Mexico’s profit dips 10% after tepid consumption growth