Sales of P$74.4bn were 14.8% higher YoY and close to our estimates, supported by FX tailwinds and SSS of 1.2% in Mexico and 2.8% in the U.S. In Mexico, growth was driven by higher average ticket but weighed down by declining traffic, while regional performance was solid in the Center, Metropolitan, Northeast and Southwest regions. Unit growth partially offset the weaker-than-expected SSS performance in both regions. In the U.S., meanwhile, Smart & Final continued to underperform (1% SSS) as expected, as El Super and Fiesta Mart posted mid-single-digit SSS growth. Margins were again impacted by the cost from the new Distribution Center in California, yet outperformed our more cautious estimates. Gross margin of 23.4% was 10bps higher YoY, amid better management of promotions and inventories, offsetting the RCDC cost headwinds. As expected, higher labor costs and the aforementioned DC costs led to an EBIT and EBITDA margin contraction, yet EBITDA margin of 8.4% was 70bps ahead of our estimates and only 50bps lower YoY. In Mexico, Chedraui posted improving profitability reaching a 9.5% EBITDA margin (20bps higher YoY), while in the U.S., EBITDA margin contracted 90bps YoY to 7.5% (8.1% excluding the RCDC headwind), impacted by Smart & Final. We reiterate our Outperform rating and P$160 PT, and expect a positive stock reaction in tomorrow’s trading session.