Wal-Mart de Mexico Drops as Sales Disappoint: Mexico City Mover
The stock fell 2.9 percent, erasing this year’s gain, to 37.91 pesos at the close of trading in Mexico City, the steepest decline since since June 21. The benchmark IPC index decreased 0.5 percent.
Same-store sales rose 1.2 percent in July, the company said in a statement to the Mexican stock exchange yesterday. That compares with Grupo Bursatil Mexicano’s 2.1 percent estimate, analyst Luis Willard said in a phone interview from Mexico City.
“Competitors are being very aggressive when it comes to pricing,” Willard said. “This has translated into weak customer traffic for Walmex.”
GBM, as the Mexico City-based brokerage is known, cut Wal- Mart de Mexico to the equivalent of hold from buy yesterday.
Wal-Mart de Mexico has fallen 0.8 percent so far this year, compared with the benchmark’s 10 percent advance in the same period.
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