Weak Peso Boosts Wal-Mart de Mexico Profits
April 26 2016 - 6:30PM
Dow Jones News
MEXICO CITY—Retailer Wal-Mart de Mexico said Tuesday its net
profit rose 30% on the year in the first quarter as healthy
consumer spending continued to stoke sales.
Walmex, as the retailer is known, reported quarterly net profit
of 6.72 billion pesos, or $387 million, as sales rose 13.2% to
125.5 billion pesos. Profitability and cash generation overshot
analyst expectations.
"Consumption continues to be favorable," said Walmex Chief
Executive Guilherme Loureiro, who added that the retailer's sales
growth outpaced competitors in all segments and regions.
The weak Mexican peso has been boosting purchasing power for
families that receive U.S. dollar remittances from relatives.
Mexicans living abroad sent $24.8 billion back to the country in
2015, a seven-year high. Remittances have continued to grow this
year thanks to favorable labor conditions in the U.S.
Walmex executives said they slashed expenses during the quarter
and focused on key items that drive customers into stores, such as
food and other edibles.
Walmex accounts for around 6% of Wal-Mart Stores Inc.'s annual
global sales and is one of the Bentonville, Ark., company's biggest
overseas operations.
Write to Amy Guthrie at amy.guthrie@wsj.com
(END) Dow Jones Newswires
April 26, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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