Brazilian retailer Companhia Brasileira de Distribuicao ( CBD ) reported second quarter 2013 earnings of R$0.16 (8 cents per share) compared with R$1.00 per share (51 cents per share) in the year-ago quarter. Our Recommendation We are impressed with CBD's strong market position and economies of scale that have helped the company deliver strong results despite continued weakness in consumer expenditure. However, inflation in Brazil is denting CBD's food business and the company is struggling hard to keep prices down.