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Reuters
an hour ago
- Business
- Reuters
Mexico retailers poised for Q2 bump despite inflation rebound
MEXICO CITY, July 14 (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 ( opens new tab, Chedraui ( opens new tab, and Liverpool ( opens new tab 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 ( opens new tab, which owns Mexico's omnipresent chain of Oxxo convenience stores, and bottled drink giant Arca Continental ( opens new tab. 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)
Yahoo
2 hours ago
- 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)
CNBC
2 hours ago
- Business
- CNBC
Athlete-backed Jams takes on peanut butter and jelly, protein craze
The classic peanut butter and jelly sandwich is getting a modern day upgrade and backing from some top athletes. Jams, a new company created by 26-year-old Connor Blakley, launched Monday and hopes to take on Smucker's Uncrustables as the next locker room and lunch box staple. Like Uncrustables, the sandwiches fall in the frozen foods category. Backed by names like U.S. soccer legend Alex Morgan and NFL Pro Bowlers C.J. Stroud and Micah Parsons, Jams will be available exclusively at 3,000 Walmart stores nationwide. Uncrustables has dominated the market with a near PB&J monopoly, but Blakley is hoping to differentiate his products by appealing to health-conscious consumers. "No. 1 is it's no seed oils," he said. "We have no dyes, no artificial flavors or colors, no high fructose corn syrup, and we have the most protein per ounce of any peanut butter and jelly that's currently on the market." Smucker's parent company J.M. Smucker, late last month said it would remove synthetic food colors from all of its consumer food products by the end of 2027. Jams is a slightly larger project than the Smuckers option, at a weight of 74 grams versus Uncrustables' 58 grams. Blakley also said his product has a lower total sugar content, and each sandwich contains 10 grams of protein. Walmart also stocks Uncrustables at a $4.34 price point. Jams will cost slightly more at $5.97 per box. Jams will initially be available in two flavors: strawberry and a mixed berry option. The entrepreneur, who dropped out of high school when he was 17, said he has taste-tested more than 250 iterations of PB&J sandwiches in the process of developing Jams. The sandwiches are manufactured in Ohio and Wisconsin. But Blakley has a steep hill to climb. In its most recent earnings call in June, J.M. Smucker said it is on track to generate over a billion dollars in net sales by the end of fiscal 2026 from Uncrustables, noting that they are the No. 1 product in the the total frozen category. To support the rising demand, Smucker's recently opened its third and largest Uncrustables manufacturing facility in McCalla, Alabama. Blakley said he believes the key market for his sandwiches will be athletes. NFL teams consume more than 80,000 Uncrustables per year as a growing number of teams and athletes look for a fast, convenient and filling snack, according to a 2024 report by The Athletic. "Athletes want to get the best possible products to fuel their body and lifestyle," Blakley said. He attributed the success of the peanut butter and jelly sandwich to two things: nostalgia and ease. "I think convenience is really, really a big part of why category has and will continue to take off," he said.
Yahoo
3 hours ago
- Automotive
- Yahoo
Walmart (WMT) Recalls 850,000 Bottles After Reports of Permanent Vision Loss
Walmart (WMT, Financials) is recalling approximately 850,000 Ozark Trail 64-ounce stainless steel bottles due to a dangerous lid malfunction that has caused serious injuries, including permanent vision loss in two individuals, according to a July 10 alert from the U.S. Consumer Product Safety Commission. The product's black screwcap lid can forcefully eject when opened, creating what the agency called a serious impact and laceration hazard. Another consumer reported a separate injury linked to the defect. The bottlesmarked with model number 83-662were manufactured in China and sold exclusively at Walmart stores and online for about $15. Consumers are being urged to immediately stop using the bottles and return them to Walmart for a full refund. The company has not yet responded publicly to the incident. This article first appeared on GuruFocus.
Phone Arena
4 hours ago
- Business
- Phone Arena
The AirPods Pro 2 are still a shocking 40% off even after Prime Day
Missed Amazon Prime Day? Well, that doesn't necessarily mean you missed out on all deals. In fact, some devices are still retailing at their Prime Day price, including the AirPods Pro wireless earbuds first dropped by 40% a week ago at both Walmart and Amazon. We thought both merchants would end the sale after Prime Day wrapped up—but, surprisingly enough, they didn't. Amazingly, the high-class buds remain $100 off ($90 off at Walmart due to a lowered MSRP), so you can still buy them at their lowest price ever. $100 off (40%) The AirPods Pro 2 are still available at $100 off their original price, even after Prime Day. This remains their best discount so far, so if you missed last week's summer sale, you still have time to save big! Buy at Amazon The AirPods Pro 2 are also on sale at Walmart. Over here, the earbuds sell for just under $150, but the merchant has lowered the earbuds' MSRP, so the discount is $90, not $100. Buy at Walmart With their comfortable fit and design, these puppies can stay in your ears even during tough workouts. But design isn't the only strong suit—they also boast some of the best ANC on the you turn the noise cancelling on, these Apple earbuds block various unwanted sounds, creating an immersive listening experience most users would definitely enjoy. Of course, you also have Transparency mode, which lets the world in—and it works great as well. What about audio quality? It's simply top-notch! Out of the box, you can expect clean and satisfying bass that's not overwhelming in any way, crisp and slightly overemphasized highs, and wide mids. As we've mentioned in our AirPods Pro 2 review, that's what you get with Spatial Audio on. If you turn it off, the earbuds sound a lot flatter. Extras like Hearing Aid and Health support are also on deck, helping you monitor your hearing health and more. Battery life is quite solid, too. You get up to five and a half hours with Spatial Audio or six hours without the feature. That's plenty of time to enjoy your favorite tunes. If you store them in the charging case between sessions, you can get up to 30 hours of music. Overall, the AirPods Pro 2 may not be the latest product on the market, but they're still some of the best wireless earbuds money can buy. For many users, they might be worth it even at their standard price. But now that they're $100 off, they're a way more attractive choice. Hurry up and get a pair while this epic deal lasts. Secure your connection now at a bargain price! We may earn a commission if you make a purchase Check Out The Offer
