July 27, 2017 / 8:37 PM / 2 years ago

Walmex says second quarter profit more than doubled on Suburbia sale

MEXICO CITY (Reuters) - Wal-Mart de Mexico on Thursday said net profit in the second quarter more that doubled due to the sale of clothing chain Suburbia to department store and shopping mall operator El Puerto De Liverpool (LIVEPOLC1.MX).

The company, Mexico’s biggest retailer, said in a report to Mexico’s bourse that net profit rose 118 percent to 13.5 billion pesos ($743 million) over the three-month period.

The company said it recorded a net gain of 7 billion pesos from the sale of Suburbia.

The result was more than double the net profit expected in a Reuters poll of six analysts, the average of which was nearly 6.6 billion pesos.

Total revenue rose 9 percent to 135.7 billion pesos in the second quarter compared to the same period last year. Walmex, as the company is known, said it opened 21 stores from April to June, taking its total number of locations to 3,046.

Online sales rose 35 percent, but the segment is still less than 1 percent of its total sales.

Walmex (WALMEX.MX) shares closed down nearly 0.9 percent at 42.31 pesos before the report was released.

Reporting by Anthony Esposito and Noe Torres; Editing by Chris Reese

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