PriceSmart (PSMT) Reports Fiscal 2025 Second Quarter Operating Earnings Results And Opening Of Ninth Warehouse Club In Costa Rica

PriceSmart, Inc. (PSMT) today announced its financial results for the fiscal quarter, showcasing a strong performance that exceeded market expectations. The company reported earnings per share of $1.45, slightly surpassing the estimated $1.44, marking a positive earnings beat. Additionally, PriceSmart achieved a revenue of $1.36 billion, which exceeded the anticipated $1.36 billion by $4.66 million. This robust performance highlights PriceSmart’s continued growth and operational efficiency in the competitive retail sector.

Key Highlights:

• Total revenues for the second quarter of fiscal year 2025 increased by 5.6% to $1.36 billion.
• Net merchandise sales grew by 5.8% to $1.33 billion, with a constant currency increase of 7.0%.
• Comparable net merchandise sales increased by 6.7%, with a constant currency increase of 7.9%.
• Operating income for the second quarter was $65.3 million, and net income rose by 11.4% to $43.8 million.
• Adjusted EBITDA for the second quarter was $87.0 million.
• PriceSmart opened its ninth warehouse club in Costa Rica, bringing the total to 55 clubs.
• Year-to-date total revenues increased by 6.6% to $2.62 billion, with net merchandise sales up by 6.8%.
• The company plans to open a new warehouse club in Quetzaltenango, Guatemala, in the summer of 2025.

Summary:

PriceSmart, Inc. reported a strong performance for the fiscal second quarter of 2025, with total revenues increasing by 5.6% to $1.36 billion compared to the previous year. The company saw a 5.8% rise in net merchandise sales, reaching $1.33 billion, and a 6.7% increase in comparable net merchandise sales. Despite foreign currency exchange rate fluctuations negatively impacting sales by 1.2%, the company achieved a constant currency sales growth of 7.0%. Operating income for the quarter was $65.3 million, while net income increased by 11.4% to $43.8 million, or $1.45 per diluted share. Adjusted EBITDA also saw an increase, reaching $87.0 million for the quarter.

In addition to its financial results, PriceSmart expanded its footprint by opening its ninth warehouse club in Costa Rica, bringing the total number of clubs to 55 across 12 countries and one U.S. territory. The company continues to focus on growth, with plans to open a new warehouse club in Quetzaltenango, Guatemala, in the summer of 2025. Year-to-date, PriceSmart’s total revenues increased by 6.6% to $2.62 billion, with net merchandise sales up by 6.8%. The company’s strategic initiatives and expansion plans are expected to drive further growth, despite challenges such as currency fluctuations and international market risks.

PriceSmart, Inc. (PSMT) has experienced a turbulent period in the stock market, with its share price declining by 6.82% over the past week and 7.54% over the past month. The three-month and six-month figures paint a similar picture, with declines of 11.51% and 9.75%, respectively. Despite these short-term setbacks, the stock has managed to eke out a modest 0.97% gain over the past year. On the fundamental side, PriceSmart’s financial metrics present a mixed bag. The company boasts a healthy revenue two-year compound annual growth rate (CAGR) of 9.88% and an impressive earnings per share (EPS) two-year CAGR of 14.71%, indicating robust growth potential. However, the negative free cash flow two-year CAGR of -9.47% raises concerns about cash generation. Additionally, the company’s price-to-earnings ratio is alarmingly negative, suggesting potential issues with profitability or valuation. Despite these challenges, PriceSmart’s return on invested capital of 12.89% and net profit margin of 2.76% reflect a degree of operational efficiency.

PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. Its warehouse clubs sell brand name and private label consumer products, essential goods, fresh produce, prepared foods, and fresh-baked goods, as well as provides services, such as optical, tire center, and other ancillary services. The company also operates Click & Go, an e-commerce platform for online ordering, curbside pickup, and delivery services. As of March 29, 2022, it operated 49 warehouse clubs in 12 countries and one U.S. territory. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.