MEXICO CITY – Walmart’s Mexican operations delivered disappointing fourth-quarter results this week, with earnings falling short of Wall Street expectations as the retail giant grappled with currency headwinds.
Walmex, which operates Walmart stores throughout Mexico and Central America, saw its net income decline 3.9% during the final three months of 2025 compared to the previous year. The company earned 14.60 billion pesos, significantly below the 16.68 billion pesos that financial analysts had projected, according to data from LSEG.
While sales increased by 3% to reach 282.85 billion pesos for the quarter, this figure also came up short of analyst expectations of 287.37 billion pesos.
The retailer’s Central American business faced particular challenges during the reporting period, though performance improved when accounting for currency fluctuation impacts. Mexico’s peso gained significant strength against the U.S. dollar, rising 13.8% over the full year and 1.5% in the fourth quarter alone, which reduced the value of international earnings when converted back to pesos.
Chief Executive Officer Cristian Barrientos emphasized the company’s commitment to its core strategy moving forward. “We know what we have to do, we have clear priorities and we will accelerate the speed at which we are moving,” Barrientos stated in the earnings announcement. He indicated the company will continue prioritizing competitive pricing, maintaining product inventory, and expanding its online shopping platform.
Despite the profit challenges, Walmex maintained its aggressive expansion strategy throughout the quarter. The company launched 102 additional locations in Mexico, with the majority being Bodega Aurrera discount grocery stores, while adding 13 more stores in Central American markets. This growth brought the retailer’s total store count to 4,265 locations across the region.
The exchange rate at the end of December was approximately 18.01 Mexican pesos per U.S. dollar.
