Latest news with #HotSale
Business Insider
5 days ago
- Business
- Business Insider
Walmart Stock (WMT) Strengthens as Central American Sales Heat Up
Walmart (WMT) stock was stronger today after its Mexican arm reported a surge in revenues. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Walmart de México y Centroamérica revealed a revenue increase of 8.3% in the second quarter and 7.4% for the first half of the year. E-Commerce Gains The company said it had made market share gains, had been 'competitive on price', expanded the availability of private brands and had accelerated e-commerce growth. It reported same-store sales growth of 4.4% in Mexico and 4.0% in Central America for the second quarter. E-commerce gross merchandise value (GMV) saw a significant increase, with Mexico experiencing a 20% growth and Central America a remarkable 49% growth compared to the previous year. However, it also reported that operating income decreased by 4.0% and net income by 10.3% for the quarter. This is important given Walmart's international reach and importance in terms of group revenues. Looking ahead, Walmart de México y Centroamérica said it remained focused on enhancing its digital capabilities and customer engagement, while 'navigating the dynamic retail environment.' It added that it was optimistic about the company's strategic initiatives and their potential to drive long-term growth. Mexican Magic Earlier this year it announced a $6 billion investment to open additional stores across the country. It already has 3,200 stores in operation across nearly 700 municipalities in all 32 Mexican states. Walmart's Mexican arm recently revealed record in-store and online sales during Mexico's Hot Sale, a nine-day promotional period that began in late May. An LSEG poll of analysts forecasts Walmex will post a 9% revenue and 5% profit jump from a year earlier. Analysts said retailers, such as Walmart, have rolled out strategies inviting consumers to shift habits rather than cut back on purchases. For instance, they have been promoting cheaper store-brand products, offering loyalty programs and using smaller packaging. However, there are shadows over the Mexican horizon with analysts pointing to the country's headline inflation rate, which is outside the central bank's target range of 2% to 4%. There are also concerns over the potential impact of Trump tariffs. As can be seen below, macroeconomic uncertainty is a key risk for the stock. Is WMT a Good Stock to Buy Now? On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $120. WMT stock's consensus price target is $111.33, implying a 17.20% upside.
Business Insider
15-07-2025
- Business
- Business Insider
Walmart Stock (WMT) Cheered by Mexican Shopping Wave
Walmart (WMT) stock was in high spirits today, lifted by the prospect of strong retail sales in Mexico in the second-quarter. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to a Reuters report, retailers in Mexico are expected to post solid results helped by favorable calendar effects, such as the inclusion of Easter in the quarter, and promotions. Hot in Mexico Walmex has already announced record in-store and online sales during Mexico's Hot Sale, a nine-day promotional period that began in late May. An LSEG poll of analysts forecasts Walmex will post a 9% revenue and 5% profit jump from a year earlier. That's important given Walmart's international reach and importance in terms of overall group revenues. That's been helped, according to analysts, by many workers receiving their annual profit-sharing bonus payments in May, which put more cash in their pockets. 'The Hot Sale's timing was able to benefit from the boost of PTU payment… especially for retailers more exposed to discretionary consumption like clothing or electronics,' said Antonio Hernandez, consultant at Actinver. Ariel Mendez, consultant at Ve Por Mas financial group, said the Easter effect could also boost soft drinks and snacks Analysts said retailers, such as Walmart, have rolled out strategies inviting consumers to shift habits rather than cut back on purchases. For instance, they have been promoting cheaper store-brand products, offering loyalty programs and using smaller packaging. Mexican Shadows 'Retailers are increasing private label participation, as these brands are cheaper, more accessible for customers, and often yield better margins for the stores,' said Hernandez. However, there are shadows over the Mexican horizon with analysts pointing to the country's headline inflation rate, which is outside the central bank's target range of 2% to 4%. Core inflation, considered a better indicator of price trends, reached its highest level in June since April 2024. Other headwinds come in the shape of Trump's threatened 30% tariffs on imports into the U.S. from Mexico. The new tax hits on August 1 and could push up prices, disrupt supply chains, and pressure margins across industries from autos to retail. Is WMT a Good Stock to Buy Now? On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $120. WMT stock's consensus price target is $111.33 implying a 16.76% upside.
Yahoo
14-07-2025
- Business
- Yahoo
Mexico retailers poised for Q2 bump despite inflation rebound
By Natalia Siniawski MEXICO CITY (Reuters) -Mexican retailers are expected to post solid second-quarter 2025 results, boosted by favorable calendar effects, though global economic risks and sticky inflation present challenges for brands in the year's second half, analysts told Reuters. Favorable calendar effects have made analysts more optimistic about the quarter. Still, investors will watch results from Mexico's Walmart, Chedraui, and Liverpool for signs of how retailers were attracting cautious consumers as inflation ticked up and the economy weakened. Analysts said inclusion of the Easter holiday in the second quarter will give sales figures a boost from last year, when Easter was in the first quarter. Walmex has already announced record in-store and online sales during Mexico's Hot Sale, a nine-day promotional period that began in late May. An LSEG poll of analysts forecast Walmex will post a 9% revenue and 5% profit jump from a year earlier. Antonio Hernandez, an analyst at Actinver, told Reuters many workers received their annual profit-sharing bonus payments in May, which increased their spending power during the promotional period. "The Hot Sale's timing was able to benefit from the boost of PTU payment... especially for retailers more exposed to discretionary consumption like clothing or electronics," Hernandez said. Ariel Mendez, consultant at Ve Por Mas financial group, said the Easter effect could boost soft drink and snacks retailers like Femsa, which owns Mexico's omnipresent chain of Oxxo convenience stores, and bottled drink giant Arca Continental. In May, Mexico's annual headline inflation rose outside the central bank's target range of 2%-4%, where it remained in June. Core inflation, considered a better indicator of price trends, reached its highest level in June since April 2024. Analysts said retailers have rolled out strategies inviting consumers to shift habits rather than cut back on purchases. For instance, they have been promoting cheaper store-brand products, offering loyalty programs and using smaller packaging. "Retailers are increasing private label participation, as these brands are cheaper, more accessible for customers, and often yield better margins for the stores," said Hernandez. Walmart, Chedraui, and Liverpool have all expanded these lines across multiple price tiers. Analysts will likely read second-quarter results as a sign of how retailers' tactics could pay off in the second half, when the central bank forecasts the economy will grow just 0.1%. Other headwinds could come in the form of lower remittances, which fell 4.6% in May, after April saw the steepest drop in over a decade. Analyst Hernandez warned that political and macro uncertainty could hit retailers more exposed to these flows. He added that while the minimum wage rose 12% this year, sales are not growing at the same pace — raising questions about whether consumers will spend more, and on what. "I believe retailers will maintain all these strategies," Mendez said. "They not only provide a tool to combat inflation, but also allow them to be much more efficient, have wider margins, and, with that, better returns for investors." ($1 = 18.8332 Mexican pesos at end-June)
