Core Points - PriceSmart, Inc. has announced the appointment of Gualberto Hernandez as the new Chief Financial Officer (CFO) effective June 1, 2025, following the resignation of Michael McCleary by mutual agreement [1] - Michael McCleary will continue to serve as an Executive Vice President until September 30, 2025, and will provide consulting support for three months post-resignation [1] Group 1: Leadership Transition - Gualberto Hernandez has extensive experience, having served as Vice President Finance & Strategy for Latin America at The Estée Lauder Companies since January 2016, and held various leadership roles within the company [2] - Robert Price, Interim CEO, expressed gratitude for Michael McCleary's contributions over his 20-year tenure, highlighting the company's growth during his leadership, including a doubling of club count and an eight-fold increase in revenues [3] Group 2: Company Overview - PriceSmart operates 55 warehouse clubs across 12 countries and one U.S. territory, with plans to open a new club in Quetzaltenango, Guatemala in summer 2025, bringing the total to 56 [4]

Financial Performance - PriceSmart's net merchandise sales reached $133 billion for the three months ended February 28, 2025, representing a 58% growth [99] - Net merchandise sales saw a constant currency growth of 70% [99] - Membership income increased by 128% to $209 million [99] - Total revenue grew by 56% to $136 billion [99] - For the first six months of fiscal year 2025, net merchandise sales reached $256 billion, a 68% increase [101] - Membership income for the first six months grew by 133% to $411 million [101] Membership and Expansion - PriceSmart operates 55 warehouse clubs across 12 countries and one US territory [36] - The company has over 193 million members [12] - Membership renewal rate stands at 870% [33] - Private label penetration of total net merchandise sales is 274% for the six-month period ended February 28, 2025 [68] Omni-Channel and Digital Penetration - Omni-channel sales penetration of total net merchandise sales is 57% [99, 101]

Financial Data and Key Metrics Changes - In the second quarter, net merchandise sales reached over $1.3 billion, and total revenue was almost $1.4 billion [14] - Net merchandise sales increased by 0.8% or 7% in constant currency during the second quarter [15] - Net income for the second quarter was $43.8 million or $1.45 per diluted share, compared to $39.3 million or $1.31 per diluted share in the same quarter last year [25] - Adjusted EBITDA for the second quarter was $87 million compared to $84.1 million in the same period last year [25] - Total gross margins as a percentage of net merchandise sales decreased by 10 basis points to 26.6% [21] Business Line Data and Key Metrics Changes - In Central America, net merchandise sales increased by 0.4% or 0.6% in constant currency [15] - In the Caribbean, net merchandise sales increased by 0.4% or 0.6% in constant currency [16] - In Colombia, net merchandise sales increased by 0.6% or 16% in constant currency [17] - Membership accounts grew by 0.1% to over 1.9 million accounts, with a 12-month removal rate of 87% [18] Market Data and Key Metrics Changes - All markets in Central America had positive comparable net merchandise sales growth, except for El Salvador [15] - The Caribbean region contributed approximately 230 basis points to the growth in total consolidated comparable net merchandise sales for the second quarter [16] - Colombia contributed approximately 100 basis points to the growth in total consolidated comparable net merchandise sales for the quarter [17] Company Strategy and Development Direction - The company is focusing on enhancing its distribution infrastructure and plans to open new warehouse clubs in Guatemala and other locations [30][31] - The company is actively seeking ways to improve its distribution network, including operating its own fleet of trucks [33] - The company is investing in technology to enhance supply chain efficiency and improve the member experience [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing tariff challenges and emphasized the importance of sourcing products locally and regionally [10][11] - The company is developing contingency plans to adapt to the uncertain tariff environment [12] - Management expressed optimism about the growth opportunities in digital channels and plans to continue investing in this area [44] Other Important Information - The company opened its ninth warehouse club in Costa Rica during the quarter [9] - The effective tax rate for the second quarter was 22% compared to 25% a year ago, primarily due to tax optimization initiatives [24] - The company has seven recycling centers open and plans to expand this program [46] Q&A Session Summary Question: Impact of tariffs on merchandise sourcing - Management is not aware of any reciprocal tariffs imposed by Central American countries and believes the impact will be minimal [55][60] Question: Future store openings - Management disclosed that there are up to six locations in various stages of due diligence and permitting, but no specific timing was provided [66]

Revenue Growth - Total revenues for Q2 FY2025 increased by 5.6% to $1.36 billion compared to $1.29 billion in the same period last year[3] - Year-to-date total revenues for the six months ended February 28, 2025, increased by 6.6% to $2.62 billion compared to $2.46 billion in the prior year[7] Merchandise Sales - Net merchandise sales grew by 5.8% to $1.33 billion from $1.26 billion in Q2 FY2024, with a constant currency increase of 7.0%[3] - Comparable net merchandise sales for clubs open for more than 13.5 months increased by 6.7% for the 13-week period ended March 2, 2025[5] - Net merchandise sales for the three months ended February 28, 2025, reached $1,334,555 million, with a growth rate of 5.8% compared to the previous year[23] - Comparable net merchandise sales growth for the thirteen weeks ended March 2, 2025, was 6.7%, while the comparable net merchandise sales on a constant-currency basis grew by 7.9%[24] Net Income - Net income rose by 11.4% to $43.8 million, or $1.45 per diluted share, compared to $39.3 million, or $1.31 per diluted share, in Q2 FY2024[6] - Net income for the three months ended February 28, 2025, was reported at $43,760 million, an increase from $39,271 million for the same period in 2024, reflecting a growth of 3.8%[21] Operating Income and EBITDA - Adjusted EBITDA for Q2 FY2025 was $87.0 million, up from $84.1 million in the same period last year[6] - Operating income for the first six months of FY2025 was $123.5 million, compared to $121.8 million in the prior-year period[9] - Adjusted EBITDA for the six months ended February 28, 2025, was $161,895 million, compared to $166,137 million for the same period in 2024, indicating a decrease of 2.0%[21] Foreign Currency Impact - Foreign currency exchange rate fluctuations negatively impacted net merchandise sales by $14.7 million, or 1.2%, in Q2 FY2025[3] - The unfavorable impact of foreign currency exchange on net merchandise sales for the six months ended February 28, 2025, was $19,406 million, equating to a 0.8% decrease[23] Company Expansion - The company opened its ninth warehouse club in Costa Rica, bringing the total to 55 clubs[11] - The company plans to open one additional warehouse club in Quetzaltenango, Guatemala, in the summer of 2025[14] Assets and Liabilities - Total assets increased to $2,092,665 million as of February 28, 2025, up from $2,022,694 million on August 31, 2024, representing a growth of 3.5%[19] - Total current liabilities increased to $701,805 million as of February 28, 2025, compared to $680,148 million on August 31, 2024, marking a rise of 3.5%[19] Retained Earnings and Equity - Retained earnings rose to $932,673 million as of February 28, 2025, up from $890,272 million on August 31, 2024, reflecting an increase of 4.7%[19] - The company reported a total stockholders' equity of $1,172,586 million as of February 28, 2025, compared to $1,122,965 million on August 31, 2024, indicating a growth of 4.4%[19] Salaries and Benefits - The company experienced a decrease in accrued salaries and benefits, which fell to $38,258 million from $48,263 million, a decline of 20.7%[19]

Company Operations - PriceSmart operates 55 warehouse clubs across 12 countries and the U.S. Virgin Islands, generating revenues exceeding $4.9 billion in fiscal year 2024[179]. - The company has nearly 2 million membership accounts and almost 4 million cardholders, with annual fees of approximately $40 for Diamond Membership and $80 for Platinum Membership, which includes a 2% cash-back rebate[180]. - PriceSmart sources about 50% of its merchandise from regional suppliers, focusing on innovation by adding services like optical, audiology, and pharmacy, along with online shopping options[181]. - The company plans to open a new warehouse club in Guatemala in summer 2025, which will increase the total to 56 clubs[186]. - In April 2025, PriceSmart opened a new warehouse club in Costa Rica, located in Cartago, enhancing its market presence[185]. Financial Performance - Total revenues increased by 5.6% year-over-year, with net merchandise sales rising by 5.8%[204]. - Membership income for Q2 FY 2025 increased by 12.8% to $20.9 million compared to the prior year[204]. - Net income for Q2 FY 2025 was $43.8 million, or $1.45 per diluted share, compared to $39.3 million, or $1.31 per diluted share, in Q2 FY 2024[204]. - Adjusted EBITDA for Q2 FY 2025 was $87.0 million, up from $84.1 million in the same period last year[204]. - Net merchandise sales for the three months ended February 28, 2025, reached $1,334,555, reflecting a 5.8% increase from $1,260,916 for the same period in 2024[209]. Membership and Sales Growth - Private-label sales under the Member's Selection® brand accounted for 27.4% of total merchandise sales during the first six months of FY 2025, up from 27.1% in the same period of FY 2024[201]. - Platinum Membership accounts increased to 14.5% of the total membership base as of February 28, 2025, up from 9.6% a year earlier[201]. - Comparable net merchandise sales for the 13 weeks ended March 2, 2025, increased by 6.7%, with a constant currency increase of 7.9%[204]. - Central America segment net merchandise sales increased by 5.4% and 6.8% for the three and six months ended February 28, 2025, contributing 330 basis points and 410 basis points to total sales growth, respectively[210]. - Caribbean segment net merchandise sales grew by 6.4% and 5.9% for the same periods, contributing 180 basis points and 170 basis points to total sales growth[211]. Currency and Economic Impact - Approximately 80% of net merchandise sales in the first half of fiscal years 2025 and 2024 were in currencies other than the U.S. dollar, with 49.6% and 49.4% of those sales being products purchased in U.S. dollars[190]. - Currency fluctuations significantly impact sales and profits, with a 15% devaluation of the Colombian peso in fiscal year 2023 affecting the company's gross margin[191]. - Currency fluctuations negatively impacted net merchandise sales by approximately $14.7 million (1.2%) for the three months and $19.4 million (0.8%) for the six months ended February 28, 2025[216]. - The company experienced U.S. dollar illiquidity in certain markets, impacting its ability to convert local currencies into U.S. dollars, with $75.6 million in Trinidad dollar denominated cash and cash equivalents as of February 28, 2025[270]. Expenses and Taxation - Selling, general and administrative expenses rose by 7.0% in Q2 FY 2025, primarily due to investments in technology[204]. - The effective tax rate decreased to 27.2% in Q2 FY 2025 from 30.5% in Q2 FY 2024, attributed to tax optimization initiatives[204]. - The effective tax rate for the six months ended February 28, 2025, was 26.9%, down from 31.4% in the prior year, attributed to tax optimization initiatives[263]. - The company recorded a $7.2 million charge in fiscal year 2023 to settle a minimum tax payment dispute in one of its operating countries[196]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended February 28, 2025, was $126,385,000, a slight decrease of $1,281,000 from $127,666,000 in the prior year[271]. - Net cash used in investing activities decreased by $25,756,000 to $79,508,000 for the six months ended February 28, 2025, primarily due to a $40.7 million decrease in property and equipment expenditures[272]. - Capital expenditures for the six months ended February 28, 2025, were $62,800,000, with $35,600,000 for maintenance and $27,200,000 for growth expenditures[276]. Shareholder Returns - The company declared an annual cash dividend of $1.26 per share on February 6, 2025, with $0.63 per share paid on February 28, 2025[275]. - The company repurchased approximately 1,007,000 shares of common stock under a program that was completed in the first quarter of fiscal year 2024[283]. Risk Factors and Compliance - The company’s operating results fluctuate due to seasonal retail patterns and external economic factors, making quarterly results not indicative of full-year performance[296]. - The company’s tax returns are subject to routine reviews by taxing authorities, which may challenge the interpretations used to calculate tax liabilities[287]. - The company evaluates long-lived assets quarterly for impairment indicators, which could lead to adjustments based on future business activity estimates[294].

Core Insights - PriceSmart, Inc. reported a 5.6% increase in total revenues for the second quarter of fiscal year 2025, reaching $1.36 billion compared to $1.29 billion in the same period last year [2] - Net merchandise sales grew by 5.8% to $1.33 billion, with a constant currency increase of 7.0% [2][7] - The company achieved net income of $43.8 million, or $1.45 per diluted share, marking an 11.4% increase from the previous year [5][9] Financial Performance - Total revenues for the first six months of fiscal year 2025 increased by 6.6% to $2.62 billion compared to $2.46 billion in the prior year [7] - Net merchandise sales for the first half of fiscal year 2025 rose by 6.8% to $2.56 billion, with a constant currency increase of 7.6% [7] - Adjusted EBITDA for the second quarter was $87.0 million, up from $84.1 million in the same period last year [6] Comparable Sales - Comparable net merchandise sales for the 53 warehouse clubs open for more than 13.5 months increased by 6.7% for the 13-week period ending March 2, 2025 [4] - Comparable net merchandise sales on a constant currency basis for the same period rose by 7.9% [4][26] - For the 26-week period ending March 2, 2025, comparable net merchandise sales increased by 6.2%, with a constant currency increase of 7.1% [8][26] Operational Updates - As of February 28, 2025, PriceSmart operated 54 warehouse clubs, with a new club recently opened in Costa Rica, bringing the total to 55 [3][11] - The company plans to open an additional warehouse club in Quetzaltenango, Guatemala in the summer of 2025, which will increase the total to 56 [15] Currency Impact - Foreign currency exchange rate fluctuations negatively impacted net merchandise sales by $14.7 million, or 1.2%, in the second quarter compared to the prior year [2][24] - For the first six months, the negative impact from foreign currency exchange was $19.4 million, or 0.8% [7][24]

Core Points - Robert Price will step down as Interim CEO of PriceSmart effective August 31, 2025, transitioning to Executive Chairman of the Board of Directors [1][2] - David Price, currently Executive Vice President and Chief Transformation Officer, will succeed Robert Price as CEO starting September 1, 2025 [1][2] - The transition is part of a succession plan approved by the Board of Directors, ensuring continuity in leadership and company culture [2][3] Company Overview - PriceSmart operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, with 54 clubs across 12 countries and one U.S. territory [5] - The company plans to open two new warehouse clubs in 2025, one in Cartago, Costa Rica, and another in Quetzaltenango, Guatemala, bringing the total to 56 clubs [5]

Group 1 - PriceSmart, Inc. plans to release its financial results for the second quarter of fiscal year 2025 on April 9, 2025, after market close [1] - A conference call to discuss the financial results will be held on April 10, 2025, at 12:00 p.m. Eastern time [1] - PriceSmart operates 54 warehouse clubs across 12 countries and one U.S. territory, with plans to open two additional clubs in Costa Rica and Guatemala in 2025 [2] Group 2 - The company emphasizes its focus on providing high-quality merchandise and services at low prices to its members [2] - Once the new clubs are opened, PriceSmart will operate a total of 56 warehouse clubs [2]

Core Points - PriceSmart, Inc. announced an 8.6% increase in its annual dividend, reflecting the Board's confidence in the company's financial strength [1][2] - The annual cash dividend is set at $1.26 per share, with payments scheduled for February 28, 2025, and August 29, 2025 [2] - The company operates 54 warehouse clubs across 12 countries and plans to open two additional clubs in Costa Rica and Guatemala in 2025 [6] Dividend Declaration - The Board of Directors declared an annual cash dividend of $1.26 per share, an increase from last year's $1.16 per share [2] - The dividend will be paid in two installments of $0.63 per share [2] - Future dividends will be determined at the Board's discretion based on financial performance and capital requirements [3] Annual Meeting Results - Eleven nominees were elected to the PriceSmart Board of Directors during the annual meeting [4] - Stockholders approved the compensation for named executive officers for fiscal year 2024 and an amendment to increase the number of shares available for equity awards by 750,000 [5] - Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending August 31, 2025 [5] Company Overview - PriceSmart operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean [6] - The company currently has 54 warehouse clubs and plans to expand to 56 with new openings in 2025 [6]

Company Overview - PriceSmart Inc operates membership-based shopping clubs in Latin America and the Caribbean [1] - The company has a competitive moat in its operating regions [1] Analyst Commentary - Previous bullish commentary on the stock due to its competitive advantages [1] Note: The provided content does not contain sufficient information to create additional groupings or key points beyond the company overview and analyst commentary sections