Walmart Mexico Loses $3.2 Billion in Market Value After Q2 Profit Drop – What’s Behind the Slide?

Walmart de México (Walmex) just suffered a massive market shake-up, with its stock tanking 6% on Thursday, wiping out a jaw-dropping 60.9 billion pesos (~$3.25 billion) in market value.

The trigger? Q2 profits came in 10% lower than expected, despite an 8% increase in sales. Investors were clearly spooked by weaker margins and rising operational costs.

📉 Walmex’s Profit Slump: A Breakdown

The retail giant’s second-quarter report revealed that while sales were solid, the company spent more than analysts had predicted — especially on:

• Tech upgrades

• E-commerce expansion

• New store launches

• Higher labor costs

As a result, EBITDA margins fell to 9.5%, the lowest since Q2 2020 and 81 basis points below last year’s same period.

📊 Analysts: "Profitability Is the Key Challenge"

Financial group Banorte weighed in, saying:

“The company faces a very important challenge: regaining profitability.”

Even Walmex CEO Ignacio Caride didn’t sugarcoat things. In a pre-recorded call with investors, he admitted he was "not happy" with the numbers — though he remained confident in the overall strategy.

Caride, who joined Walmex after a decade at MercadoLibre (MELI), has been leading a charge to grow Walmex’s online presence and digital services, betting on long-term market dominance.

🛒 Can Walmart Mexico Bounce Back?

Walmex remains Mexico’s largest retailer, and its digital transformation strategy has shown promise. But investors are now watching closely to see:

• Can they rein in costs while still expanding?

• Will e-commerce efforts pay off without draining margins?

• Can margins recover by the next quarter?

Executives are expected to answer these questions in a live analyst call later today.

💱 Market Impact

• WALMEX Stock: Down 6%

• Market Cap Loss: ~$3.25 billion

• Exchange Rate: $1 USD = 18.75 MXN