Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May catalog.</li><li>While May did not register any material new campaigns, and historically is a key transition month, the catalog continued the key tenets of the 2025 focus: 1) more product: SKUs rose YoY 4.6%, the fourth consecutive month of YoY SKU increases; 2) more newness: new product offerings increases YoY, with kitchen the key driver; 3) higher pricing: the average pricing for May was the highest the last four years and up 9.3% YoY and 4) more bargains: May also had a higher level of product discounts YoY, as the Mexican consumer remains focused on bargains; that said, May price cuts were the lowest level in 2025.</li><li>We believe the May catalog reflected a somewhat resolute Betterware management, focused on driving returns in a tough Mexican economy.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May catalog.While May did not register any material new campaigns, and historically is a key transition month, the catalog continued the key tenets of the 2025 focus: 1) more product: SKUs rose YoY 4.6%, the fourth consecutive month of YoY SKU increases; 2) more newness: new product offerings increases YoY, with kitchen the key driver; 3) higher pricing: the average pricing for May was the highest the last four years and up 9.3% YoY and 4) more bargains: May also had a higher level of product discounts YoY, as the Mexican consumer remains focused on bargains; that said, May price cuts were the lowest level in 2025.We believe the May catalog reflected a somewhat resolute Betterware management, focused on driving returns in a tough Mexican economy.

BWMX：カタログをスナップ：新しさと価格設定がリターンを左右。PTは買い推奨