Corporativo Fragua (FRAGUAB) Q1 2026 earnings summary

Executive summary

• Total sales for Q1 2026 reached $34,673 million MXN, up 7.0% year-over-year, driven by commercial strategies and expansion.

• Same-store sales grew 4.1% compared to Q1 2025.

• Opened 18 new stores, expanding into two new cities and reaching 3,027 locations nationwide.

• Workforce grew by 4.4% year-over-year, adding 2,772 new permanent jobs.

• Despite positive sales, net income declined 7.7% year-over-year to $1,234 million MXN.

Financial highlights

• Gross profit increased 8.7% year-over-year to $8,595 million MXN; gross margin rose to 24.8% from 24.4%.

• Operating income decreased 1.8% year-over-year to $2,664 million MXN; operating margin fell to 7.7% from 8.4%.

• Net margin adjusted to 3.6% of sales.

• Operating expenses rose 14.4% year-over-year, reaching $6,834 million MXN.

Outlook and guidance

• Plans to open 120 new stores in 2026, averaging one new store every three days.

• Construction began on a new distribution center (CEDIS Noroeste), expected to serve 600 stores and start operations by late 2027.