Core Insights - PriceSmart's stock price has reached new all-time highs in early 2025, indicating a potential upside of $45 as it broke out of a previous trading range and established new support levels [2][3] - The company's fiscal Q1 results for 2026 showed strong revenue growth of nearly 10%, driven by new store openings and comparable store sales, with net revenue of $1.38 billion exceeding analyst expectations by 140 basis points [5][6] - PriceSmart is positioned as a leader in emerging markets, benefiting from GDP growth in these regions, particularly in Latin America, which is expected to grow over 100 basis points faster than the global average [4] Financial Performance - The fiscal Q1 results indicated a 10.6% increase in net merchandise sales (9.5% on an FX-neutral basis) and an 8% increase in comparable sales, reflecting strong operational performance [5] - The company reported GAAP earnings of $1.29, beating consensus estimates by 1 cent, despite increased investment activities impacting earnings [6] Growth Strategy - PriceSmart plans to build four new stores, which are already under construction, and expand into key Caribbean markets such as Costa Rica, Jamaica, and the Dominican Republic [6] - The stock is considered to present value relative to peers and has shown faster growth over a comparable period, reinforcing its competitive position in the market [4]

Core Viewpoint - PriceSmart Inc has delayed the opening of two new warehouse clubs in Jamaica due to disruptions from Hurricane Melissa, with new expected opening dates set for autumn 2026 and winter 2026 for the respective locations [1][2]. Group 1: New Store Openings - The third Jamaican location in Montego Bay is now scheduled for autumn 2026, while the fourth location on South Camp Road in Kingston is expected to open in winter 2026, which is about three months later than previously planned [2]. - The company does not anticipate any further delays for new club openings at this time, according to CEO David Price [2]. Group 2: Financial Investments - PriceSmart has acquired five acres in Montego Bay for the new club and has leased property opposite Sabina Park cricket ground for the Kingston site, with plans to spend approximately US$27.6 million (J$4.4 billion) on construction [3]. - The Kingston lease is for 30 years, with two options for 10-year renewals [3]. Group 3: Current Operations and Performance - Jamaica currently has two PriceSmart clubs, which experienced heavy traffic during the Christmas season, with customers reportedly waiting up to four hours to check out [4]. - PriceSmart operates 56 clubs across 12 countries and one US territory, an increase from 54 clubs a year earlier [5]. - The company reported first-quarter earnings per share of US$1.29, which fell short of forecasts of US$1.35, while revenue increased to US$1.38 billion, exceeding expectations [5]. Group 4: Future Expansion Plans - CEO David Price mentioned that the existing Jamaican clubs have "weathered the storm well" and resumed operations quickly, with plans for expansion and remodeling of the Portmore club to begin in fiscal 2026 [6]. - The expansion will include larger floor space and more parking, which are seen as effective ways to drive sales and enhance the member experience [6].

Core Insights - PriceSmart, Inc. reported strong financial performance in its fiscal first quarter of 2026, with earnings per share (EPS) of $1.29, slightly above estimates of $1.28, and revenue of approximately $1.38 billion, exceeding forecasts of $1.36 billion [2][6] Financial Performance - The company's revenue increased by 9.9% from the previous year's $1.26 billion, demonstrating consistent growth [2] - Net merchandise sales grew by 10.6%, reaching $1.35 billion, up from $1.22 billion in the first quarter of fiscal year 2025, with comparable net merchandise sales rising by 8.0% [3][6] - Foreign currency exchange rate fluctuations contributed an additional $13.8 million, or 1.1%, to net merchandise sales [3] Valuation Metrics - PriceSmart's shares have risen by nearly 40% over the past year, trading at 23 times forward earnings, which is considered a discount compared to Costco [4][6] - The company's price-to-earnings (P/E) ratio is approximately 25.92, with a price-to-sales ratio and enterprise value to sales ratio both at about 0.74, indicating favorable valuation relative to its sales and earnings [4] Financial Health - PriceSmart maintains a low debt-to-equity ratio of approximately 0.14 and a current ratio of around 1.33, indicating strong liquidity [5] - The enterprise value to operating cash flow ratio is approximately 13.51, reflecting the company's ability to cover its enterprise value with operating cash flow [5] Growth Potential - The company has plans to expand in Costa Rica, demonstrating growth potential in underpenetrated markets [5]

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Financial Data and Key Metrics Changes - Net merchandise sales and total revenue reached almost $1.4 billion during Q1, with net merchandise sales increasing by 10.6%, or 9.5% in constant currency [6][24] - Comparable net merchandise sales increased by 8%, or 6.9% in constant currency [6] - Operating income for Q1 increased by 8% to $62.9 million, while net income rose to $40.2 million, or $1.29 per diluted share, up from $37.4 million, or $1.21 per diluted share in the prior year [25][26] Business Line Data and Key Metrics Changes - In Central America, net merchandise sales increased by 9.6%, or 9.2% in constant currency, with all markets showing positive comparable net merchandise sales growth [7] - The Caribbean saw a 5.7% increase in net merchandise sales, or 7.8% in constant currency, with all markets also reporting positive growth [8] - Colombia experienced a significant increase in net merchandise sales of 27.8%, or 15% in constant currency, contributing positively to consolidated comparable net merchandise sales [8] Market Data and Key Metrics Changes - Membership accounts grew by 6.7% year over year to over 2 million accounts, with a strong renewal rate of 89.3% [9] - Digital channel sales reached $89.8 million, up 29.4% year over year, representing 6.6% of total net merchandise sales [17] - Private label sales represented 27% of total merchandise sales, down 70 basis points from the previous year, but would have shown an increase on a comparable basis [15] Company Strategy and Development Direction - The company is focused on expanding its real estate footprint, with plans for new clubs in the Dominican Republic, Jamaica, and Costa Rica, aiming to operate 60 warehouse clubs in total [10][12] - Supply chain transformation is a key strategy, with new distribution centers planned in Trinidad, Colombia, and the Dominican Republic to improve product availability and reduce lead times [14] - The company is investing in technology to enhance member experience and operational efficiency, including a new point of sale system and human capital management system [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, citing resilient consumer demand and strong execution by teams across various markets [5] - The company is monitoring economic factors such as remittance flows and potential impacts from Venezuelan migration to Colombia, but has not seen changes in consumer demand [21][37] - December's performance was impacted by external factors, but management remains optimistic about trends entering calendar 2026 [22] Other Important Information - The effective tax rate for Q1 was 27.9%, up from 26.5% a year ago, primarily due to non-recurring items [26] - Cash provided by operating activities reached $71.2 million, an increase of $32.7 million compared to the prior year [27] - The company is committed to growing its private label penetration through strategic product development [16] Q&A Session Summary Question: Were the comps positive in Honduras and Panama despite supply chain issues? - Management indicated that while they do not share detailed country-level data, there was a good recovery in Honduras post-election and acceptable results in Panama [31][32] Question: What factors contribute to Colombia's strong performance? - Management attributed Colombia's strength to external factors like the peso's strength and internal factors such as a strong team and product mix [33][34] Question: What impact might increased Venezuelan migration have on Colombia's economy? - Management refrained from speculation but noted strong consumer demand in Colombia and a good brand position [37] Question: Why did cash in Trinidad increase from $60 million to $80 million? - Management explained that the increase is due to seasonal cash flow fluctuations and does not indicate material changes in market conditions [38][39] Question: What insights have been gained from the Chilean market? - Management noted that Chile is competitive and digitalized, with no direct club models present, which presents an opportunity for differentiation [45] Question: How will warehouse and parking expansions impact operations? - Management stated that expansions help improve member experience and operational efficiency, although specific regional impacts could not be disclosed [48][49]

Financial Data and Key Metrics Changes - Net merchandise sales and total revenue reached almost $1.4 billion during the first quarter, with net merchandise sales increasing by 10.6%, or 9.5% in constant currency [6] - Comparable net merchandise sales increased by 8%, or 6.9% in constant currency [6] - Operating income for the first quarter increased by 8% to $62.9 million [26] - Net income for the first quarter was $40.2 million, or $1.29 per diluted share, up from $37.4 million, or $1.21 per diluted share, in the prior year [27] - Adjusted EBITDA for the first quarter was $86.9 million, a growth of 9.8% [27] - Total gross margin remained unchanged at 15.9% of net merchandise sales [25] Business Line Data and Key Metrics Changes - In Central America, net merchandise sales increased by 9.6%, or 9.2% in constant currency, with comparable net merchandise sales up by 5.4% [7] - In the Caribbean, net merchandise sales increased by 5.7%, or 7.8% in constant currency, with comparable net merchandise sales up by 5.6% [8] - In Colombia, net merchandise sales surged by 27.8%, or 15% in constant currency, with comparable net merchandise sales increasing by 27.9%, or 14.7% in constant currency [8] Market Data and Key Metrics Changes - Membership accounts grew by 6.7% year over year to over 2 million accounts, with a strong renewal rate of 89.3% [9] - Digital channel sales reached $89.8 million, up 29.4% year over year, representing 6.6% of total net merchandise sales [18] - Private label sales represented 27% of total merchandise sales, down 70 basis points from the previous year [16] Company Strategy and Development Direction - The company is focusing on expanding its real estate footprint, with plans to open new clubs in the Dominican Republic, Jamaica, and Costa Rica [10][12] - A strategic emphasis is placed on growing Platinum memberships, which now represent 19.3% of total membership, up from 14% [9] - Investments in supply chain transformation and technology are ongoing, including the opening of new distribution centers and the implementation of advanced management platforms [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong consumer demand and operational execution [5] - The company is monitoring economic factors such as remittance flows and U.S. tariffs, which have not significantly impacted operations to date [21][22] - Management noted that while there are challenges in certain markets, overall consumer demand remains strong [23] Other Important Information - The company is advancing its migration to a new forecasting and replenishment platform, expected to enhance inventory management and sales growth [15] - The company is also enhancing its digital capabilities, with a focus on improving the online shopping experience for members [18] Q&A Session Summary Question: Were the comps positive in Honduras and Panama despite supply chain issues? - Management indicated that there was front-loading of purchasing in Honduras due to elections, and recovery is noted post-election, while Panama is seeing acceptable results [33][34] Question: What factors contribute to Colombia's strong performance? - Management attributed Colombia's strength to favorable currency conditions, a strong local merchandise mix, and effective team operations [35][36] Question: How might increased migration from Venezuela affect Colombia's economy? - Management refrained from speculation but noted strong consumer demand in Colombia and a solid brand position [39] Question: Why did cash in Trinidad increase from $60 million to $80 million? - Management explained that the increase is due to seasonal cash flow variations and ongoing challenges in currency availability [40][41] Question: What insights have been gained from the Chilean market? - Management noted that Chile is competitive and digitalized, with no direct club models present, which presents an opportunity for differentiation [48] Question: How will warehouse and parking expansions impact operations? - Management stated that expansions improve member experience and operational efficiency, although specific regional impacts were not disclosed [51][52]

Financial Data and Key Metrics Changes - Net merchandise sales and total revenue reached almost $1.4 billion during the first quarter, with net merchandise sales increasing by 10.6%, or 9.5% in constant currency [5] - Comparable net merchandise sales increased by 8%, or 6.9% in constant currency [5] - Operating income for the first quarter increased by 8% to $62.9 million [25] - Net income for the first quarter was $40.2 million, or $1.29 per diluted share, up from $37.4 million, or $1.21 per diluted share, in the prior year [26] - Adjusted EBITDA for the first quarter was $86.9 million, a growth of 9.8% [26] - Total gross margin for the quarter remained strong and unchanged at 15.9% [24] Business Line Data and Key Metrics Changes - In Central America, net merchandise sales increased by 9.6%, or 9.2% in constant currency [6] - In the Caribbean, net merchandise sales increased by 5.7%, or 7.8% in constant currency [7] - In Colombia, net merchandise sales increased by 27.8%, or 15% in constant currency [8] - Membership accounts grew by 6.7% year over year to over 2 million accounts, with a strong renewal rate of 89.3% [9] - Private label sales represented 27% of total merchandise sales, down 70 basis points from the same period last year [16] Market Data and Key Metrics Changes - Digital channel sales reached $89.8 million, up 29.4% year over year, representing 6.6% of total net merchandise sales [18] - Orders placed directly through the website or app grew by 18.1%, with average transaction value up 10.1% [18] - Membership income as a percentage of revenue increased to 1.7%, compared to 1.6% in the prior year [10] Company Strategy and Development Direction - The company is focusing on expanding its real estate footprint, with plans to open new clubs in the Dominican Republic, Jamaica, and Costa Rica [10][12] - The company is advancing its supply chain transformation strategy, including opening new distribution centers and implementing a new forecasting platform [15][16] - The company aims to enhance its membership strategy by growing Platinum memberships, which represent 19.3% of the total membership base, up from 14% in the same period last year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong consumer demand and operational execution [5] - The company is monitoring remittance flows to Latin America and the Caribbean, which are significant for several markets [22] - Management noted that while U.S. tariffs do not apply to most merchandise, they continue to monitor the evolving trade policy environment [21] Other Important Information - The company is investing in technology to enhance both member and employee experience, including a new point of sale system and human capital management system [19][20] - The company is addressing operational disruptions caused by Hurricane Melissa, with existing clubs recovering quickly [11] Q&A Session Summary Question: Were the comps positive in Honduras and Panama despite issues? - Management indicated that there was front-loading of purchasing in Honduras due to elections, and recovery is seen post-election, while Panama is experiencing okay results [30] Question: What factors contribute to Colombia's strong performance? - Management attributed Colombia's strength to the favorable peso exchange rate, local merchandise mix, and strong team execution [31] Question: What impact might increased migration from Venezuela have on Colombia's economy? - Management refrained from speculation but noted strong consumer demand in Colombia [32] Question: Why did cash in Trinidad increase from $60 million to $80 million? - Management explained that the increase is due to seasonal cash flow fluctuations and ongoing challenges in the availability of U.S. dollars [33] Question: What insights have been gained from the Chilean market? - Management noted that Chile is competitive and digitalized, with no direct club models, but they feel optimistic about entering the market [36] Question: How sustainable is the revenue growth in Colombia? - Management expressed confidence in Colombia's growth, emphasizing efficient operations and a strong brand position [38]

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2026 PriceSmart, Inc. Overview Presentation Issued: January 2026 NASDAQ : PSMT 1 ForwardLookingStatements This presentation may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements ...

Shopping warehouse club owner PriceSmart, Inc. ( PSMT ), reported its first-quarter results following a strong finish to its 2025 fiscal year. Over the past year, shares have flown under the radar, gaining 40%. Its performance has beenAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensatio ...