Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX)
Mexico flag Mexico · Delayed Price · Currency is MXN
55.07
-0.46 (-0.83%)
Apr 30, 2026, 1:59 PM CST
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Earnings Call: Q4 2025

Feb 18, 2026

Paulo Garcia
President and CEO, Walmart

Thank you, Cristian, and good afternoon, everyone. I'm honored to step into the role of Chief Operating Officer. I started my Walmart career over 35 years ago as a store associate in the U.S., and throughout my career, I've spent most of my time in operations, leading stores, markets, regions, and large-scale retail networks. Today, I'm excited to be working alongside our teams, focused on executing with discipline across more than 3,000 stores in Mexico, and on strengthening the fundamentals that serve millions of customers every day. So let's review some of our operational and commercial highlights of the quarter. Regarding growth, Mexico reported a 3.3% same-store sales growth, with ticket growing 3.9% and transactions declining 0.5%, similar to the previous quarter.

Health & Wellness led among merchandise divisions, followed by Food & Consumables , while the Northern Region continued to be the leading region in terms of growth for another quarter. In Bodega, which was the leading format in growth, our customer value proposition shines brighter in this economic backdrop. We saw household penetration in lower income segments increase more than 300 basis points. At Sam's Club, our teams made important progress, improving availability and member experience. In-stock levels improved, driven by better safety stock automation, improved forecasting, and stronger execution in fresh and perishables. Member experience also improved meaningfully, with NPS increasing 1,100 basis points as teams simplified the omnichannel journey and reduced renewal friction. In Walmart Supercenter, we made progress in upgrading the in-store experience.

The first phase of the Supercenter image refresh was executed in line with our annual plan, and in parallel, we expanded the rollout of our Store of the Future concept. Store of the Future focuses on optimizing space, such as expanding sales floor of some of the fastest growing categories like pets, integrating new concepts, and improving store flow to increase traffic, productivity per square meter, and customer engagement. While still in the pilot phase, early results reinforce our confidence that Store of the Future can strengthen Walmart Supercenter competitiveness in grocery and support profitable long-term growth. Let me also share that we returned to Buen Fin campaign after six years. While the event came in below our initial expectations, customer engagement remained strong. We delivered more than 76 million transactions across stores and clubs and over 180 million visits in e-commerce.

November 17 marked the highest sales day in Walmex history. These results give us clear learnings as we continue refining our execution and assortment for future events. Now, let me go through our three non-negotiables to see how we are advancing in each of them. First, everyday low prices. In addition to what Cristian already shared with you related to strengthening our everyday low price philosophy, we are refining our assortment to strengthen our customer value proposition, leveraging Centella and deep customer insights. Initial progress includes rationalization of assortment in formats such as Mi Bodega Aurrera and Bodega Aurrera Express. In the latter, we are reducing the number of SKUs by more than 30%. In parallel, we are enhancing modular and assortment processes and best practices from Walmart U.S. and Canada.

The international leverage allows us to scale proven capabilities, increase consistencies across formats, and accelerate learning by adopting what already works well in other markets. Regarding private brands, penetration continues increasing. During the fourth quarter, we launched and relaunched more than 200 items across categories, combining value-driven innovation, seasonal relevance, and global leverage to strengthen our overall proposition. These initiatives, together with clear communication and the discipline of our teams, are behind the price perception increase of 260 basis points versus last year. This was the biggest improvement in many quarters, and it is a critical indicator of how customers experience our value proposition. Additionally, delivering everyday low prices is only sustainable if it is supported by everyday low-cost execution across the business.

We are transforming our cost structures through strategic productivity initiatives enabled by technology like digital shelf labels, Smart Receiving , which is receiving process reengineering, and automation of administrative activities like cash management and store back office. Now turning to availability. We are moving from isolated improvements to a much more integrated execution model, leveraging Walmart U.S. best practices. We are strengthening execution by connecting three critical elements into one simplified process. First, store mapping to clearly define how space is used in each store, so inventory can be placed, moved, and replenished efficiently. Second, real-time inventory visibility to know exactly where product is, whether it's on the sales floor or in the back room. And third, on-hand management, so data is translated into clear, actionable tasks for our associates to keep shelves stocked and inventory accurate.

Associates now have clearer direction on what to replenish and when aisles are better stocked across the store, and inventory accuracy continues to improve. This is already having direct benefits in our days on hand, which improved 1.7 days versus previous year, while improving overall availability... This also directly benefits our omni-channel operations, as pickers and last mile partners can locate products more easily and follow automated routes, reducing friction and improving service levels. This model is already delivering results in our flagship stores. It will be fully deployed in Food & Consumables by the end of the first half of the year and will begin rolling out to Hardlines in the second half.

These kinds of efforts, as well as general improved execution of the teams, are behind total availability improvement of 130 basis points versus the third quarter, on top of the improvement we had already delivered versus the second quarter. Total availability is an internal metric we are using that is more rigorous than the traditional in-stock or OSCA measurements that we've used in the past, which we believe raises the bar on product availability tracking as it measures whether the product is actually on the shelf when the customer is there. Now, turning to e-commerce. In the fourth quarter, e-commerce GMV grew 13.3%, and for the full year, GMV grew 17.1%.

On-demand continues to lead growth, increasing 19.1% in the quarter and 22.1% for the full year, while Marketplace GMV grew 15.3% in the quarter and 12.7% for the year. As a result, e-commerce penetration reached 9.1% of total GMV in the fourth quarter and 8.3% for the full year. We advanced the integration of our digital platforms through one hallway. At the same time, we continued to scale our store-based fulfillment model, improving delivery speed as well as service levels, with important improvements in on-time, in-full, and NPS across all formats.

The expansion of our crowdsourcing model is supporting greater adoption of same-day and rapid delivery options, where 10% of orders in Sam's were already delivered in less than 90 minutes, while in Supercenter and Express, we delivered 20% of the orders in less than 90 minutes and more than 60% of the orders in the same day. This represents an improvement of more than 500 basis points versus prior year. Also, Sam's Club delivered solid growth, driven primarily by higher engagement from individual members, with orders increasing close to 25% versus last year. Regarding our reach, we are actively extending our delivery radius of each store, allowing us to serve more households without necessarily opening new physical locations. This is how we are better leveraging our existing store network, improving asset productivity, and expanding convenience for our customers.

We look forward to sharing more detail on these strategic refinements at our upcoming Walmex Day. At the same time, we are building a healthier marketplace. This means expanding into more categories and sellers with stronger margin profiles and leveraging cross-border opportunities that meet our return thresholds. E-commerce growth this quarter was below our long-term ambition. As we move through this global platform implementation, we are seeing a natural learning curve as customers go through an adaptation process. While some short-term friction is expected in any transformation of this scale, we are encouraged by early stability and expect performance to improve gradually as customer behavior normalizes, familiarity with the platform increases, and a marketplace scale becomes more relevant. Let me now turn to our ecosystem new businesses.

Bait generated revenues of MXN 3.5 billion in the fourth quarter, while active users reached 26.4 million, up 44% year-over-year. Importantly, Bait's integration with our stores continued to deepen, with more than 2.2 million customers receiving free mobile data through purchases in Walmart stores through December alone, helping increase overall average ticket. For the full year, Bait generated MXN 11.5 billion in revenue, growing 60% year-over-year. Walmart Connect increased revenues by 5% in the quarter and reached 17% growth for the full year, reaching MXN 4.4 billion in Mexico, significantly ahead of advertising growth in the market, reflecting the strength of retail media advertising. We have seen some pressure on advertising budgets from suppliers in the last two quarters, given the current macro environment, which has moderated growth in the short term.

Cristian Barrientos
COO, Walmart

That said, we expect advertising investment to recover as conditions improve, supporting long-term growth in 2026. Beneficios has become a powerful tool to strengthen execution across business. As we connect with 49.6 million active users by the end of the fourth quarter, we are now able to identify more than 70% of our omni-channel sales, fundamentally shifting from anonymous transactions to more personalized and deeper relationships with our customers and members. Those insights support better decisions across merchandising, supply chain, and store operations, allowing us to respond faster to shifts in customer needs and operate with greater discipline. Before handing it over to Paulo, I want to share a personal reflection. Having recently arrived in Mexico, I've spent time in stores, clubs, and operations, working closely with our teams.

What stands out to me is the commitment, pride, and speed with which associates are responding to a more challenging environment. There is a strong sense of ownership and a clear focus on fundamentals that gives me a lot of confidence. I've been truly impressed by the talent and resilience of our teams, and I'm excited about what we can continue building together while leveraging global platforms and best practices from other Walmart markets. With that, I'll turn the call over to Paulo, who will walk you through our financial results. Thank you once again for joining us today.

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