Wal-Mart de Mexico Shares Fall as Same-Store Sales Extend SlumpJonathan Levin
Wal-Mart de Mexico SAB, Latin America’s biggest retailer, fell to a one-month low after the company said same-store sales declined last month.
The shares sank 0.9 percent to 33.15 pesos at the close of trading in Mexico City, the lowest closing level since Sept. 6. The IPC index of 35 Mexican companies rose 0.2 percent today.
Sales at Mexico stores open at least a year fell 4.7 percent in September, the fifth decline in six months and a reading Credit Suisse Group AG said was the worst drop on record through 1999. Walmex had 4.8 percent fewer customers in the period, the company said yesterday in a regulatory filing. Walmex shoppers increased spending by 0.1 percent in September, a measure known as average ticket, which was slower than the annual inflation rate of 3.46 percent.
“The new concerning trend seems to be average ticket,” Credit Suisse analysts including Antonio Gonzalez and Armando Perez wrote in a report yesterday. Credit Suisse has an underperform recommendation on Walmex, and it had projected a 3.5 percent contraction in same-store sales.
Walmex said it opened 12 stores in September, including 11 in Mexico and one in El Salvador.