Retailer Wal-Mart de Mexico, known locally as Walmex, has blamed higher expenses and a shift in the timing of Easter for a 4.5% drop in first-quarter profits.
Net income came to MXN4.75bn (US$363.2m) for the three months to 31 March, compared to MXN4.97bn in the same period last year.
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Sales climbed 2.1% to MXN101.41bn.
The company, which is controlled by US retail giant Wal-Mart, said sales were impacted by the late Easter and a soft performance from Sam’s Club.
“This year started with many challenges for our core customer in a still difficult economic environment, and we had a negative calendar effect, as Easter was in March last year and this time it takes place in April, moving from first quarter to second quarter,” said CFO Rafael Matute.
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Gross margin improved to 21.8% from 21.5% in the prior year period. General expenses, however, rose 6.4% to MXN15.80bn over MXN14.86bn last year.
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