Tiendas 3B reports strong Q2 sales growth despite margin pressure
Investing.com -- Tiendas 3B reported impressive second-quarter 2025 results with sales growing 38.3% to P$18.8 billion, exceeding consensus estimates by 2.7% and positioning the company to surpass its full-year guidance of 26-29% growth.
The Mexican discount retailer maintained strong momentum in store expansion, adding 142 new locations during the quarter to reach a total of 3,031 stores, representing a 21% year-over-year increase.
The company has opened 259 stores in the first half of 2025, progressing toward its full-year target of 500-550 new locations.
Same-store sales growth accelerated to 17.7% in Q2, up from 13.5% in Q1, significantly outperforming competitors like Walmex (4.4% SSS) and Chedraui (3.7% SSS). This performance highlights the strength of Tiendas 3B’s hard discount model in the current weak consumer environment.
Despite the strong top-line growth, EBITDA margins declined by 58 basis points year-over-year to 4.5%, while gross margin fell 53 basis points to 16.2%.
Administrative expenses increased 50% compared to the same period last year, driven by expansion into four new regions and higher employee stock ownership plan (ESOP) expenses of P$252 million versus P$141 million in Q2 2024.
The company reported a net loss of P$286 million for the quarter, compared to a net income of P$331 million in Q2 2024, primarily due to increased financial costs and a foreign exchange loss of P$234 million.
Sales expenses rose 40% year-over-year, broadly in line with overall sales growth. Operating income increased by 4.8% with a margin of 2.1%, representing a 67 basis point decline from the previous year.
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