Background and Relevance of Walmart Mexico (Walmex)
Walmart de México, also known as Walmex, is a prominent player in the retail sector, operating both physical stores and an e-commerce platform. The company is a subsidiary of the global retail giant, Walmart Inc., and plays a crucial role in Mexico’s retail market. Walmex’s performance is closely watched by investors and analysts due to its significant presence and influence in the Mexican economy.
Stock Performance and Impact
On the specified Thursday, Walmex’s stocks plummeted by more than 7%, erasing over 70,000 million pesos from its market capitalization. This decline caused Walmex to relinquish its position as the most valuable company on the Bolsa Mexicana de Valores (BMV).
Reasons for the Stock Decline
The stock drop was primarily due to Walmex’s second-quarter 2025 results, which failed to meet market expectations. The company reported lower-than-estimated performance across all key indicators, attributed to weakened consumer demand and increased operational costs.
- Q2 2025 Performance: Walmex’s revenue grew by an annualized 8.3% to 246,254 million pesos during the April-June period. However, net income fell by 10.3% to 11,227 million pesos, resulting in earnings per share of 0.64 pesos—below the anticipated 0.73 pesos.
- Operational Challenges: Analysts, including Carlos Hernández García from Banorte and Emiliano Hernández Marván from Grupo Bursátil Mexicano (GBM), highlighted persistent profitability pressures stemming from high operational costs. These pressures have yet to translate into substantial revenue growth.
- Future Outlook: Despite near-term volatility in stock prices, analysts like Emiliano Hernández Marván and Ariel Méndez Velázquez from Banco Bx+ anticipate a more favorable environment for consumption in the second half of 2025. Walmex is expected to achieve consolidated revenue growth between 6% and 7% for the remainder of the year.
BMV Market Capitalization and Key Players
The S&P/BMV IPC, the primary index of the BMV, is dominated by five major companies: Walmex, América Móvil, Grupo México, Fomento Económico Mexicano (FEMSA), and Banorte. These companies account for 56% of the total market capitalization.
- América Móvil: With a market capitalization of 984,960 million pesos, América Móvil leads the BMV in terms of value. The telecommunications company, headed by Carlos Slim, has consistently maintained its position as the most valuable firm on the exchange.
- Grupo México: The mining exploration, exploitation, and beneficiation company ranks third with a market cap of 884,920 million pesos.
- Fomento Económico Mexicano (FEMSA): As the primary bottler of Coca-Cola products in Mexico, FEMSA holds a market cap of 650,900 million pesos and ranks fourth.
- Banorte: As Mexico’s largest bank by assets, Banorte has a market cap of 455,430 million pesos and occupies the fifth spot.
Key Questions and Answers
- What caused Walmex’s stock decline? The primary reasons for the drop were Walmex’s second-quarter 2025 results, which fell short of market expectations. The company reported lower-than-estimated performance across all key indicators, attributed to weakened consumer demand and increased operational costs.
- How does Walmex’s performance impact the BMV? Walmex is one of the five major companies that dominate 56% of the total market capitalization on the BMV. Its performance significantly influences the overall index.
- What do analysts predict for Walmex’s future? Despite near-term volatility, analysts anticipate a more favorable consumption environment in the second half of 2025. Walmex is expected to achieve consolidated revenue growth between 6% and 7% for the remainder of the year.
