BBB Foods (NYSE:TBBB) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below.
This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/.
Access the full call at https://zoom.us/webinar/register/WN_H7J00JR0SDSW2VhQ3n2KTA#/registration
Summary
BBB Foods reported strong financial performance for Q2 2026, with total revenue increasing 39% year-over-year to 26 billion pesos and same-store sales growth of 20%.
The company opened 155 new stores, bringing the total to 3,624, and expanded its distribution network with one new center.
EBITDA, excluding non-cash share-based compensation, increased 44% to 1.6 billion pesos, and operating cash flow grew by 119% in the first half of 2026.
BBB Foods continues to aggressively expand its store footprint while maintaining strong operational efficiencies and leveraging scale for improved gross margins.
Management highlighted ongoing investment in talent and technology, including ERP system enhancements, to support long-term growth and operational efficiency.
The company remains confident in significant long-term growth opportunities, driven by its resilient business model and strategic expansion efforts.
Full Transcript
Daniela, Conference Operator
Good morning everyone. My name is Daniela and I will be your conference operator. Welcome to BBB Foods' second quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. There will be a question and answer session after the speakers' remarks and instructions will be given at that time. Please ensure that your full name is displayed correctly on Zoom. If not, please take a moment to edit your display name. Also note that this call is for investors and analysts only.
Questions from the media will not be taken nor should the call be reported on. Any forward-looking statements made during this conference call are based on information that is currently available to us. Today we are joined by BBB Foods' Chairman and Chief Executive Officer Anthony Hatum and Chief Financial Officer Eduardo Pisuto. I will now turn the call over to Anthony. Please go ahead.
Anthony Hatum, Chairman & CEO
Good morning and thank you for joining us today. I will begin with a review of our operating results for the quarter and will be followed by our CFO, Eduardo Pisuto, who will provide an overview of our financial performance. We will conclude with our Q&A session. We delivered another strong quarter, sustaining and even building on the momentum we achieved in the first quarter. Here are the key highlights from our second quarter results. We opened 155 net new stores during the quarter, bringing our total store count to 3,624 as of June 30, 2026.
Over the last 12 months we've opened 593 net new stores. We also opened one new distribution center, expanding our network to 21 regions. As of the end of June, same store sales grew 20% compared to the second quarter of 2025. Total revenue increased 39% year over year to 26 billion pesos reported. EBITDA reached 960 million pesos. Excluding non-cash share-based compensation, EBITDA increased 44% to 1.6 billion pesos. For the first half of the year, cash flow generated from operating activities reached 4.3 billion pesos, representing 119% growth compared to the first half of 2025.
Let's now turn to our operational performance. As I mentioned, we opened 155 net new stores during the second quarter. Over the last 12 months we've opened 593 net new stores, representing 20% growth in our store base compared to June 2025. Our expansion strategy remains unchanged. We continue to balance densifying our presence in existing regions while selectively expanding our footprint in others. Our revenue growth remained exceptionally strong, and we believe BBB Foods continues to be amongst the fastest growing retailers globally.
Total revenue reached 26 billion pesos in the second quarter, up 39% year over year. Same store sales increased 20%, reflecting another quarter of outstanding performance. This strong growth continues to be driven by ongoing improvements to our value proposition, increasing brand awareness and growing customer loyalty. Our same store sales performance continued to significantly outperform the market during the quarter. We maintained a gap of more than 20 percentage points versus ANTAD while our internal inflation remained very low.
I will now pass the microphone to Eduardo.
Eduardo Pisuto, Chief Financial Officer
Thank you, Anthony. Good morning everyone. Sales expenses as a percentage of revenue decreased by 56 basis points to 10% year over year in the second quarter of 2026. Most of the expense lines showed operating leverage, including labor. Admin expenses excluding share-based payment increased by 57 basis points year over year, as seen in previous quarters. Admin expenses reflect our continued investment in talent and expansion into new regions to support our accelerated growth in the second quarter of 2026.
Admin expenses reflect a one-time cash expense of 37 million pesos related to the equity follow-on offering in May 2026. With respect to the share-based payment expense, these are non-cash and already reflected in our fully diluted share count. Additional details are available in the appendix of this earnings release, where we also provide projections for this non-cash expense. EBITDA for the second quarter of 2026, excluding non-cash share-based payment expense, increased 44% to 1.6 billion pesos, driven by strong sales growth, improved gross margin and operational efficiencies.
The adjusted EBITDA margin increased by 21 basis points year over year. EBITDA in the second quarter of 2026 includes a one-time cash expense of 37 million pesos related to the equity follow-on offering in May 2026; excluding this impact, the adjusted EBITDA margin in the second quarter of 2026 was 6.2%. As you know, we don't drive to an EBITDA. It will naturally continue to increase over time driven by our disciplined execution. Our business model generates strong operating cash flow through our structurally negative working capital model.
As of June 2026, adjusted negative working capital reached 10.2 billion pesos compared to 7.1 billion pesos in 2025. Excluding IPO and follow-on proceeds, this represents approximately 11.2% of total LTM revenue. Also excluding IPO and follow-on proceeds, our operating cash flow fully funds our organic expansion. I will now turn the call back over to Anthony for final remarks.
Anthony Hatum, Chairman & CEO
Thank you all for joining us today and for your continued interest in BBB Foods. We delivered a strong first half of 2026 with consistent and solid execution across our key operating and financial metrics. Our high-growth business model has continued to demonstrate its resilience across different economic environments. It delivers attractive unit economics, generates strong cash flow and becomes even more competitive as we scale. We remain confident in the significant long-term growth opportunity for BBB Foods.
Thank you. And we will now open the call for your questions.
Daniela, Conference Operator
Thank you. We will now conduct a Q&A session with Anthony Hatum and Eduardo Pisuto. If you would like to ask a question, please press the raise your hand button that is located at the bottom of the screen. We remind you that all lines have been placed on mute. So when it is your turn to ask a question, you will be given permission to speak and you will then be able to unmute yourself and ask your question. Our first question comes from Andrew Rubin at Morgan Stanley.
Andrew Rubin, Analyst at Morgan Stanley
Hi, thanks very much for the question. I'm interested to understand a bit more about the gross margin performance and just thinking about some of the drivers you mentioned, stronger commercial margin. So trying to understand what might have changed, if anything, quarter on quarter there and then second, the lower transportation costs. I think this is the first time you've mentioned that in a while, despite the DC buildout. So trying to understand these drivers, how much they contributed and how that pertains to any forward outlook on gross margin would be very helpful.
Thank you.
Anthony Hatum, Chairman & CEO
I'll take the gross margin question, Andrew. As you know, it's a dynamic process in a sense that, you know, what you're seeing here is a sum of the gross margins of all the SKUs we currently carry. In large part, let's say the main driver is we scale. We are much more efficient in terms of buying or in terms of manufacturing a good. We get better input conditions, we improve the logistics of moving that good over, and that fundamentally basically gives you a bigger pie that, if it's a private label product, you divide in a very equitable way with your producer.
And then you turn around and you say, okay, now I have a bigger pie. Let's decide, you know, at what price do we put it. And it's mostly a very ongoing adjustment of prices where we try to optimize volumes and dollar margin, and then we sum it all up and you see that, yes, it's improved, but it's the result of all these little improvements that we see across the whole portfolio. Will the trend continue? Very likely you'd see this improving as we scale and as we are just getting better at what we do.
There comes a point where, you know, in terms of percent margin, you're basically passing more into price than necessarily retaining it. But end result, the most important thing to look at is the dollar margin generated. And as long as this continues to grow healthily as we see it here, we're all very happy.
Eduardo Pisuto, Chief Financial Officer
I'll take the second portion, Andrew. Good morning. In terms of transportation expenses, I mean, I guess overall there's no doubt that as we continue to grow and gain scale, we become more efficient in all our operating line items. Specifically on logistics for Q2, two things played in our favor. One is we have ongoing efforts to optimize our transportation costs, so not only for new regions, but all of our regions. And the second one is, specifically for the distribution center that we opened in Q2, we did a better job in managing the pre-operating expenses of this region.
So of course that is something that we will apply in future regions. And I'll take advantage of your question just to give you an update on distribution centers. We have, in addition to the one we opened in Q2, in the past few weeks we opened an additional two distribution centers and we expect to open a third one within Q3, so for a total of three DCs in Q3. The reason I mention this is because we might see some pressure probably in logistics expense just because we're adding three additional new distribution.
Andrew Rubin, Analyst at Morgan Stanley
Right. That's very helpful color. Thank you both and congrats on the quarter.
Daniela, Conference Operator
Thank you. Thank you. Our next question comes from Bob Ford at Bank of America.
Bob Ford, Analyst at Bank of America
Hey, thank you very much. Good morning, Anthony, Eduardo, and again congratulations as well. With respect to same store sales, how much of the growth is ticket versus traffic and how should we think about the year-on-year improvements that you're seeing in terms of item counts per transaction? And I was also curious, you've got some phenomenal innovation. How much of that growth is coming from new SKUs? And additionally, could you give us a little update on the progress with the ERP rewrite?
There's been a revolution in programming over the last 12 months. How is that speeding up development or maybe allowing you to run a little leaner than you expected? And how should we think about deployment both in terms of functionality in the system as well as, you know, any complementary changes you may need in logistics or the point of sale?
Anthony Hatum, Chairman & CEO
Hi Bob. Good to hear from you, and many questions. Let me start with the first one, regarding where same store sales growth is coming from. We have about two thirds of the growth is explained by volume, one third is explained by price. And within price, the large impact is coming from better mix. We remain with, you know, a very low amount of inflation in our price number. There was a second part to your question that was talking about categories and category growth.
When we look at all our current categories, they're all growing at various rates, but they're all growing. When we look at maybe one or two commodity categories where we're relatively well penetrated, they're still growing, but possibly at a slightly slower pace than, let's say, in new categories that just entered, which you very rightly saw. We have a couple of new categories which, starting from a low base, are growing quite rapidly and successfully.
We've been extremely careful about introduction of new products or categories. As you know, we like to keep our SKU count on the low side. It brings a lot of benefits to us. So every time we put in an SKU, we have to make sure that it does rotate, that it's highly accepted and, you know, many times we just drop an SKU that is less, less attractive, and this will continue. I don't see a stop to that. And as you know, our stores can handle a significantly higher number of SKUs, but we're extremely conservative in introducing new ones.
One last part to your question is, You know, BBB Foods is a platform and we've said that many times. We touch a client very frequently and this client not only needs groceries, so then you can basically say that whatever this client needs is something that you can potentially offer as long as you don't violate your core principles. On the second part of your question, which had to do with our ERP, I'm very pleased with the progress on our new ERP system. We're testing phase one and I think it's going quite well.
AI tools have definitely accelerated our ability to program. But what I've noticed though is that, you know, we've just brought forward a lot of stuff that we had planned to do a little bit later, and we've even added more features that we thought we would put in a bit later. So net-net, you know, we're on track and it's going quite well. There was a last part to your question, but maybe I missed it.
Bob Ford, Analyst at Bank of America
You know, it was actually kind of plugging into, you know, maybe you're signaling this when you talk about the broader platform opportunity. But you know, I was asking you a little bit too about how you're thinking about complementary changes to the supply chain or the point-of-sale systems and just trying to get a better sense for the calendar of deployment and maybe the functionality that we'll expect over time.
Anthony Hatum, Chairman & CEO
Yeah. I mean, there's no doubt that in this new generation of ERP that you're seeing, our point of sale is a much more potent point of sale that has the ability to deliver more than just ringing up a product. And that's the whole idea of giving us optionality to offer more services to the client down the road. And in terms of logistics, again, you know, as you get bigger, suddenly you have many more doors opening for optimizing your logistics. As you know very well, we don't do much on the backside of logistics and that's quite an interesting opportunity for us to explore.
Bob Ford, Analyst at Bank of America
Very helpful, thank you. And again, congratulations.
Anthony Hatum, Chairman & CEO
Thanks, Bob.
Eduardo Pisuto, Chief Financial Officer
Thanks, Bob.
Daniela, Conference Operator
Thank you. Our next question comes from Joseph Giordano at JPMorgan.
Joseph Giordano, Analyst at JPMorgan
Hi, good morning everyone. Good morning, Anthony. Thanks for taking my question. So I want to explore a little bit—sorry—to explore a little bit the upgraded store format you guys have been talking about. So it's a little bit larger, more doors for refrigerated goods. So I'd like to understand, like, what's the percentage of new stores that are coming under the new format? So it's 100%. And second, what's the typical sales uplift we are seeing from those locations?
And last, if I may, like, how should we think about the ramp up? So looks like the ramp up of the new stores are much faster than in previous vintage. Thank you very much.
Anthony Hatum, Chairman & CEO
Hey Joe, good to hear from you. Yeah. 100% of our new stores open under the new format. We'd like to try and keep as much format discipline as we can going forward. And there's no doubt that we chose this upgraded format because it has much better performance than our older stores. Having said that, our older stores are still performing extremely well. Eduardo, do you want to touch on the others?
Eduardo Pisuto, Chief Financial Officer
Yeah, I would just add—you asked also on the ramp up, Joe. And what I can say is that we're very happy to see how these stores are performing. So if you remember, we updated our unit economics analysis in Q4, so it's pretty much trending against what we had projected. And the same thing with pretty much all our stores are tracking in the direction that we had expected. So no, there's no news there other than the ramp ups continue to be very consistent and we're very happy with the evolution of our 2026 vintage.
Joseph Giordano, Analyst at JPMorgan
Thank you.
Daniela, Conference Operator
All right, our next question comes from Ulise Saragote at Santa.
Ulises Saragote, Analyst
Hi Anthony. Eduardo, thanks for the space for questions. I had kind of a follow up to a point you made earlier, Eduardo, but you guys opened close to 280 stores in the first six months of the year and this came with only one additional distribution center. So just wanted to get some color if this is more related to some temporality effects there on the opening of distribution centers. And you already said, although there will be three new ones on the quarter, but wanted to get a sense there if you're finding any efficiencies, being able to serve a broader store base from each distribution center—what we saw in the first half of the year.
Appreciate any thoughts there. Thank you.
Eduardo Pisuto, Chief Financial Officer
Hi Ulises, thank you. I mean we are on track in terms of our openings as what we had planned in the beginning of the year. As we've discussed in previous calls, every time we open a new distribution center we of course benefit from two things. One is we continue to increase our footprint in the country and the second one is we do become more efficient because our transportation expenses get benefited from that. And we've seen that in pretty much all our DCs that we have opened.
So for the back half of the year, yes, we're opening three additional ones in Q3. If we see opportunities to open more in the back half of the year, we might do so. And again it's because at the end we become more efficient. There was a second portion of your question.
Ulises Saragote, Analyst
No, I think it was just to understand if there was kind of any temporality into what we saw in the expansion in the first half with just one DC being added.
Eduardo Pisuto, Chief Financial Officer
Yeah, as I mentioned earlier, we were benefited this quarter by those two factors that I mentioned in transportation expense and the fact that we were, I guess, smarter in the pre-opening expenses for the region that will be applied for the next regions that we open. But just a heads up—as I said—might be some pressure on logistics expense in Q3 just because we're opening three additional DCs, but in the longer run eventually these will become even more efficient.
So nothing very different from what you've seen in the past.
Ulises Saragote, Analyst
That's very clear. Thanks a lot. Gracias.
Eduardo Pisuto, Chief Financial Officer
Gracias. Thank you.
Daniela, Conference Operator
Thank you. Our next question comes from Hector Maya at Scotiabank.
Hector Maya, Analyst at Scotiabank
Hi, Anthony. Eduardo, congrats on the strong results. Just wondering if you saw any tailwind from the World Cup and if so, how much do you think it contributed to same-store sales? And also wanted to know how you are thinking about the increase in the pace of G&A investments in the second half, or if the level we saw in Q2 could be a good run rate. Thank you very much.
Anthony Hatum, Chairman & CEO
World Cup did not have a relevant impact on our sales. I mean, it was even hard to tease out anything, if at all. In terms of G&A expenses, Eduardo, you have a better handle on that?
Eduardo Pisuto, Chief Financial Officer
Sure. I think—as you know—we don't guide on these metrics, but I think it's fair to assume that we will continue to invest in talent just because we are convinced that it drives value—strong value actually. So we will continue to do so for the back half of the year. So I think it's fair to assume and expect something very similar to what happened in Q2. So let's say 3-ish percent of revenue. I think that would be, in the short term, a fair assumption.
Hector Maya, Analyst at Scotiabank
Perfect. Very clear. Thank you. Thank you very much.
Daniela, Conference Operator
Our next question comes from Ergma Scarce at Goldman Sachs.
Ergma Scarce, Analyst at Goldman Sachs
Yeah, thank you for the opportunity to ask my question. Yeah, just picking up on that G&A point. As you've made clear on your previous answer, you're looking to continue to invest into talent. Can you just be a little bit more explicit in terms of where, which areas of the organization you're looking to add talent? Obviously you've brought some important people onto the team that are sort of market facing over the last 12 months. But, you know, I'd be curious to just hear a little bit more on the back end, the part that we don't maybe directly see— which areas of the organization you're looking to add—or is this more sort of retention of talent and sort of incentives and employee value proposition that you're investing in there on the G&A side? And then just curious, I know it's a bit nitty-gritty, but I know you're testing in some stores to sort of go cardless. I know you have a lot of cash transactions in your stores, but just curious if you could sort of tease out for us what you've learned there and if there's any meaningful sort of margin gain from that, or even incremental margin gain that you envision.
Thank you.
Anthony Hatum, Chairman & CEO
Let me start with the last question. What you're referring to—as you know—when the cardless exercise is a test where we've basically taken out credit cards and debit cards to see what happens. And I can just give you a very high-level answer, saying that non-material impact. But it's a test and it doesn't mean we're going to expand it. And at any point in time you're going to find several tests running on different topics. But they all have the same kind of objective: we're either trying to generate more revenue, reduce cost, or reduce risk.
And it's always something where we're trying to create more value for the customer. On the matter of G&A investment, it has much, much less to do with improving salaries and benefits to employees and much, much more to do—and that's where the core value is—in adding talent and densifying talent across the board in critical areas. So you'll see it in purchasing, you'll see it in logistics, you'll see it in systems, you'll see it in specialty areas where, you know, one person can have a dramatic impact on creating value for the company.
We're very aware that it adds to the G&A number, but we're also much more than convinced that it's a very valuable investment with very high return.
Ergma Scarce, Analyst at Goldman Sachs
And perhaps, as we think about 27, should we think of that as an ongoing process?
Anthony Hatum, Chairman & CEO
You meant, you said fresh.
Ergma Scarce, Analyst at Goldman Sachs
No, in terms of talent.
Anthony Hatum, Chairman & CEO
Oh yeah. Talent is an ongoing process. At this point in time there is no limit to adding talent. But again, for us it's: if we do add, for example, one new person, whatever they cost, what are they going to contribute? And the answer always has to be significantly more than what they're going to cost us. And it's been the case so far.
Ergma Scarce, Analyst at Goldman Sachs
So the dilution that we should think about—the operating leverage—should come more still through the selling expense line.
Anthony Hatum, Chairman & CEO
Exactly, exactly.
Ergma Scarce, Analyst at Goldman Sachs
Thank you.
Daniela, Conference Operator
Our next question comes from Jorge Izquierdo at BTG Pactual.
Jorge Izquierdo, Analyst at BTG Pactual
Hi, good morning, Anthony. Eduardo, thanks for the space for questions and congrats on the results. I have a quick one regarding store size. Going forward, as basket size increases, how are you thinking about store sizes and the need to have parking availability in the future?
Anthony Hatum, Chairman & CEO
Interesting question. I think at this stage we're extremely comfortable with the current store size that you're seeing in the new generation of stores. And then the addition of parking or not boils down very simply to how suburban or urban are you. In urban areas, very difficult to have parking, so that sort of limits your ability to do so. But as soon as there is a need for parking and you've opened the store where there is parking, then absolutely we're putting parking.
Jorge Izquierdo, Analyst at BTG Pactual
Okay, thank you very much, Anthony.
Daniela, Conference Operator
Thank you. Our next question comes from Antonio Hernandez at Actimer.
Antonio Hernandez, Analyst at Actimer
Hi, good morning. Congrats on your results. Just a quick one regarding working capital. As new categories are being introduced or even piloted, how should we see working capital going forward? I mean, there's of course an improvement, but how much should we weight in these new categories? Thanks.
Eduardo Pisuto, Chief Financial Officer
Hi, Antonio, thanks for your question. I mean, I guess the... let me take a step back. And our overall philosophy, as you know, is we only carry items that have very high rotation. So by definition, what we look for in a new item, new category, whatever that is, is that it complies with that principle. Not only high rotation, but an amazing value. So if we consider that into your question, then there should be no impact on working capital because we always look for items with very fast rotation.
And so there should be no material impact on working capital. In fact, if you look at our trends over the past, let's say a few years, you'll see that we've been slightly improving our inventory days. So it's below 20 days. So that's what we should expect going forward. So no changes really on that front.
Antonio Hernandez, Analyst at Actimer
Perfect. Thanks a lot.
Daniela, Conference Operator
Thank you. Our next question comes from Joe Thomas at HSBC.
Joe Thomas, Analyst at HSBC
Good morning, Anthony and Eduardo. Thanks for the space and congratulations on the strong results. A couple of things, please. Firstly, same store sales, as you pointed out, it was plus 20 on a comp of plus 17 from last year. If you look at this on a two-year basis, there is a real meaningful acceleration given that the improvement is coming from—sounds like it's coming from volume more than anything else. Is that sort of two-year momentum the best way to think about how to model this out into the future and the sort of performance that can be maintained?
And secondly, I had a question on competition because we're hearing a lot of noise in the market, including from FEMSA, about their rollouts. And I just wondered what you're seeing in terms of the competitive intensity in the hard discounting space and what it is that you're doing to stay ahead of that competition. Specifically,
Anthony Hatum, Chairman & CEO
Let me take that last one. I mean, regarding FEMSA, we don't see anything more than what we've already seen. It's good to keep in mind that we already operate in a very competitive market and that it's been the case now for many years. And I continue to believe that the market potential in Mexico is significant and that there is room for several players to thrive in the sector that we call discount. So from our side, nothing new, nothing that will change what we're doing at all.
We continue to do what we're doing and I think that's gonna continue to work extremely well. With regards to same store sales growth, it's—you know, if you go back to some of the discussions we've had with the market earlier, it doesn't take much in our case to see an increase in same store sales. All we need to do is sell one more item per customer and you can see that number significantly increasing. And so we see that increase in number of products we sell to a given existing customer as something that will happen naturally over time because our products are just getting better and the value that we're offering to the client is continuing to improve. The day that stops is probably the day you don't see any more expansion in same store sales. So I would be conservative, but I would still remain positive that that's going to happen.
Joe Thomas, Analyst at HSBC
Thanks. Thank you.
Daniela, Conference Operator
Thank you. Our next question comes from Isabela Lamas at UBS.
Isabela Lamas, Analyst at UBS
Hi Anthony, Eduardo, thank you for the opportunity for taking questions here. I have two questions. First one, I'd like to tap also on your growth, but specifically on how could you think in terms of how much growth has been coming from new customers compared to the increased share of wallet from your existing ones. And also if you could elaborate on demand initiatives that you have in place to expand this number of items per transaction that you've just mentioned.
And also if you see the company gaining increasing relevance within customers' share of wallet, is this a trend that we should continue seeing from now on? And my second one is regarding your expansion, specifically on the real estate front. If you continue to see solid availability for real estate for your pipeline, if you see better negotiation conditions with landlords or any change in that, and also given that you have a very solid performance, cash generation remains healthy—I mean, if you could be considering accelerating the expansion pace.
Anthony Hatum, Chairman & CEO
Okay, let me start with the real estate question, and it's a fairly straightforward answer. There are no constraints on real estate—the runway is tremendous in Mexico for us. So we haven't seen any constraints on that front. On the matter of where's the growth going to come from—more penetration of wallet or more customers? It's always been a balance. And you know, historically, if we look back and we look at our numbers, we see that it's been a mix of both.
And it also depends on how old the store is. So you can imagine that older vintages will capture new clients at a slower rate, whereas of course our newer vintages are just capturing clients much more rapidly. And I think it was mentioned earlier on, it's also that we're seeing a faster ramp up. So it's like we get new customers—not only more customers, but we get them faster at the initial part of a store opening. And that has a very beneficial impact.
But across the board, what you will see is an increase in penetration of wallet. An increase of penetration of wallet comes from two things. One, you can add new SKUs and automatically you'll get something more there. But even without adding any new SKUs, and as I mentioned, we're super conservative on adding new SKUs, the existing portfolio is still not by any metric fully penetrated. There's still tremendous potential for existing customers with the existing portfolio to still see an increase in same store sales.
And that we have pretty good data on and we continuously monitor that. So we're pretty confident that there is a lot more to do with what we have right now without adding anything new.
Isabela Lamas, Analyst at UBS
That's clear. Thank you.
Daniela, Conference Operator
Thank you. Our next question comes from Froilan Mendez at JPMorgan.
Froilan Mendez, Analyst at JPMorgan
Hola, Eduardo, Anthony, thank you very much for taking my question. I just wanted to dig a little bit more on the gross margin. In the past you have said not to really extrapolate a single quarter margin into the full year or the next quarters. It sounds that the extra openings in the third quarter could lead to a giveback on the gross margin that we saw this quarter. But is there anything also seasonal on the gross margin during this quarter? Maybe more, I don't know, World Cup campaigns or more people using your DC versus the past?
Some more granularity on the gross margin into this quarter and what to expect into the next would be appreciated. And secondly, on the stock option plan, we know that the employee stock option plan had this restriction period during the earnings season. I understand that it's liberated tomorrow after 48 hours of the earnings release. Any comments on any mechanism that avoids any disorderly sell from management that wants to obviously gain liquidity after many years of having received stock options?
That would be highly appreciated. Thank you.
Eduardo Pisuto, Chief Financial Officer
Yeah, thank you. Let me answer the question of options. You would think that, you know, people will rush to the doors to sell their options. And I, you know, I don't have a feeling that that's going to be the case. In any event, we do already have in place mechanisms to ensure that when naturally people want to sell some of their options, it's done in a very orderly and timely way. So that's already in place. Your first question was around gross margins.
Anthony, if there was something one-off.
Anthony Hatum, Chairman & CEO
Yeah, no, I mean again, we don't see seasonality in our gross margins really, and we do see volatility quarter to quarter in the gross margins for the fundamental mechanism in which gross margins change SKU per SKU. But as I've always said, if you look at it longer term, the trend is always positive. Now I did answer Andrew's question on that, saying that there is a natural moment in time where you basically say the percent gross margin maybe stabilizes, but your dollar gross margin basically continues to increase dramatically.
So, you know, it's all due to the fact of how much of this are you passing on to the customer in terms of price that then detonates more sales, that then generates more dollar margin, versus how much you're keeping and showing a better percentage gross margin. At the end of the day, what's most important is your dollar gross margin increasing healthily over time, which is the reflection of all the good things you're doing.
Froilan Mendez, Analyst at JPMorgan
Thank you. Appreciate it.
Daniela, Conference Operator
Thank you. That is all the time we have for questions today. So that concludes our Q and A session. I would like to hand the call back over to Anthony Hatum for his closing remarks.
Anthony Hatum, Chairman & CEO
As always, we appreciate very much and thank you very much for your interest and participation in our company. Thank you to the analysts covering us and thank you to all the shareholders who are participating here today. And of course, thank you to all the 3B employees and again our customers who make all of this possible. Till next time, thank you very much.
Daniela, Conference Operator
Thank you all. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
Login to comment