Profitability and Costs - Profitability is vulnerable to cost increases, including merchandise, wages, shipping, and utilities, which may reduce profitability [63] - The increasing price of oil and certain commodities could negatively affect operating costs and sales, impacting consumer spending [312] - The company does not currently hedge against commodity price risk [312] Competition and Market Expansion - The company faces significant competition from various retail formats and online retailers, which is expected to grow in the future [64] - Future sales growth depends on successfully opening new warehouse clubs in existing and new markets [85] - The company is considering opening warehouse clubs in new markets, but faces risks related to attracting members and competition from established players [88] Membership and Sales - Membership growth and retention are critical, as they directly influence net sales and operating income [82] - Sales growth at existing warehouse clubs may be limited by physical constraints and the availability of suitable locations [86] Risks and Disruptions - The company is exposed to risks from natural disasters and climate change, which could adversely affect operations and financial results [69][70] - Civil unrest in operating countries can disrupt the flow of goods and access to warehouse clubs [74] - The company relies on third-party suppliers for merchandise and services, with risks of supply disruptions and pricing changes that could adversely affect operations [91] - The company faces risks related to product liability claims and recalls, which could harm sales and reputation if safety standards are not met [94] - Cybersecurity risks are increasing, with potential for significant operational disruptions and costs if security measures are breached [107] - The company faces risks related to compliance with international laws and regulations, which could result in significant legal costs and fines [121] Technology and E-commerce - The company is investing in technology to compete with online retailers, which may impact short-term profitability [66] - The integration of physical and digital retail channels is crucial for the company's e-commerce growth, with potential adverse effects on market position and financial performance if unsuccessful [89] - The company is increasing investments in e-commerce and technology to enhance customer experience, but these initiatives may negatively impact short-term financial performance [90] - The company is migrating to new technology systems, including a point-of-sale system, but risks exist regarding successful implementation and potential operational disruptions [99] - The use of artificial intelligence presents risks related to accuracy and bias, which could harm the company's brand and competitive position [111] - Compliance with evolving privacy and information security laws may result in increased costs and legal risks if not properly managed [105] Financial Performance and Currency Risks - As of August 31, 2024, the company operates 54 warehouse clubs across 12 countries and one U.S. territory [79] - As of August 31, 2024, the company operated 54 warehouse clubs in 12 foreign countries, with 79.5% of net merchandise sales in foreign currencies [130] - The company recorded a $7.2 million charge in fiscal year 2023 to settle a minimum tax payment dispute, including a $1.0 million reserve against an income tax receivable [125] - The monetary lease liability subject to revaluation as of August 31, 2024, was $31.5 million, with the impact of foreign currency exchange rate fluctuations being immaterial [138] - The company is subject to volatility in foreign currency exchange rates, which could materially impact its financial performance [129] - Approximately 49.0% of net merchandise sales are from products purchased in U.S. dollars but sold in foreign currencies [301] - The company has local-currency-denominated long-term loans in Barbados, Honduras, Guatemala, and Trinidad, and cross-currency interest rate swaps in Colombia [304] - A hypothetical 5% negative currency movement could result in a net loss of $436,000 due to foreign exchange fluctuations [306] - The company seeks to manage foreign exchange risk through price adjustments, local currency loans, and cross-currency interest rate swaps [304] - The company has significant U.S. dollar net liability positions in Honduras, Guatemala, Dominican Republic, and Trinidad, totaling $73.2 million, exposing it to exchange rate losses if local currencies weaken [307] - The company experienced a comprehensive decline in cash denominated in foreign currencies, totaling approximately $4.6 million [309] - The aggregate fair value of cross-currency interest rate swaps was in a net asset position of approximately $1.3 million at August 31, 2024, compared to $2.3 million at August 31, 2023 [309] - A hypothetical 10% devaluation in currency exchange rates underlying the swaps would have increased their value by approximately $4.4 million [309] - The company has faced U.S. dollar illiquidity in certain markets, notably in Trinidad and Honduras, impacting its ability to convert local currencies into U.S. dollars [311] Stockholder Influence - Approximately 15.3% of the company's voting stock is owned by a few stockholders, which may impede corporate transactions and affect stock price [127]

NET MERCHANDISE SALES GREW 9.5% COMPARABLE NET MERCHANDISE SALES INCREASED 6.2% $0.94 EARNINGS PER DILUTED SHARE SAN DIEGO, Oct. 30, 2024 /PRNewswire/ -- PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT), operator of 54 warehouse clubs in 12 countries and one U.S. territory, today announced results for the fiscal fourth quarter of 2024, which ended on August 31, 2024. Fourth Quarter Financial Results Total revenues for the fourth quarter of fiscal year 2024 increased 9.6% to $1.23 billion comp ...

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is PriceSmart (PSMT) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. PriceSmart is one of 209 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the indi ...

SAN DIEGO, Sept. 3, 2024 /PRNewswire/ -- PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT) plans to release financial results for the fourth quarter of fiscal year 2024 on Wednesday, October 30, 2024, after the market closes. PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, October 31, 2024, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing toll free (800) 549-8 ...

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. One company to watch right now is PriceSmart (PSMT) . PSMT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.99, while its industry has an average P/E of 31.01. Ove ...

Earnings Estimate Revisions for PriceSmart Analysts have been steadily raising their estimates for PriceSmart. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.9%. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a changing earnings picture in determining near-term s ...

PriceSmart, Inc. (NASDAQ:PSMT) Q3 2024 Earnings Conference Call July 11, 2024 12:00 PM ET Company Participants Michael McCleary - Chief Financial Officer Robert Price - Interim Chief Executive Officer Conference Call Participants Jon Braatz - Kansas City Capital Operator Good afternoon, everyone, and welcome to PriceSmart, Inc.'s Earnings Release Conference Call for the Third Quarter of Fiscal Year 2024, which ended on May 31, 2024. After remarks from our company's representatives, Robert Price, Interim Chi ...

Total revenues of $1.23 billion increased significantly by 12.1% from the prior year quarter. The company's net merchandise sales of $1.19 billion climbed 11.6% from the year-ago period. On a constant currency basis, the metric rose 9.1%. Notably, foreign currency exchange fluctuations positively impacted sales by $27.3 million or 2.5%. Membership income of $19.3 million rose 15.2% from the year-ago period. Total operating expenses of $1.18 billion increased 11.9% year over year. Adjusted EBITDA for the thi ...

Revenue Growth - Total revenues for the nine months ended May 31, 2024 increased 12.0% to $3.69 billion compared to $3.29 billion in the prior year[1] - Total revenues for the third quarter of fiscal year 2024 grew 12.1% to $1.23 billion compared to $1.10 billion in the prior year[27] Net Merchandise Sales - Net merchandise sales increased 11.8% to $3.59 billion, with constant currency growth of 8.3% and a positive foreign exchange impact of $111.4 million (3.5%)[1] - Comparable net merchandise sales for 50 warehouse clubs open over 13.5 months increased 8.2%, with constant currency growth of 5.0% and a 3.2% positive foreign exchange impact[2] - Net merchandise sales for the three months ended May 31, 2024, were $1,194.531 million, representing an 11.6% growth compared to the same period in 2023[19] - Net merchandise sales on a constant-currency basis for the three months ended May 31, 2024, were $1,167.249 million, reflecting a 9.1% growth[19] - Net merchandise sales increased 11.6% to $1.19 billion in the third quarter of fiscal year 2024 from $1.07 billion in the same period last year[27] - Comparable net merchandise sales for the 50 warehouse clubs open for over 13.5 months increased 7.8% for the 13-week period ended June 2, 2024[29] - Comparable net merchandise sales on a constant-currency basis for the thirteen weeks ended June 2, 2024, grew by 5.6%[20] Operating Income and Net Income - Operating income increased to $171.7 million, up from $152.4 million in the prior year period[3] - Net income increased 17.0% to $109.8 million, or $3.62 per diluted share, compared to $93.8 million, or $3.01 per diluted share, in the prior year[3] - Operating income for the third quarter of fiscal year 2024 was $49.9 million, up from $43.1 million in the prior year period[30] - Net income for the third quarter of fiscal year 2024 increased to $32.5 million, up 9.9% from $29.6 million in the same period last year[22][30] - Adjusted net income for the three months ended May 31, 2024, was $32.489 million, compared to $32.542 million in the same period in 2023[16] - Adjusted net income for the third quarter of fiscal year 2024 was $32.5 million, or $1.08 per diluted share, compared to $32.5 million, or $1.04 per diluted share, in the prior year[31] Adjusted EBITDA - Adjusted EBITDA for the first nine months of fiscal year 2024 was $232.9 million, up from $218.4 million in the same period last year[4] - Adjusted EBITDA for the third quarter of fiscal year 2024 was $71.0 million, up from $63.9 million in the same period last year[32] Membership Income - Membership income increased to $55.6 million for the nine months ended May 31, 2024, up from $48.8 million in the prior year[10] Cost of Goods Sold and Expenses - Cost of goods sold for net merchandise sales increased to $3.02 billion, up from $2.70 billion in the prior year period[10] - Selling, general and administrative expenses increased to $346.8 million, up from $306.7 million in the prior year period[10] Cash and Cash Equivalents - Cash and cash equivalents decreased from $239.984 million in August 2023 to $128.271 million in May 2024, a decline of 46.5%[12] Total Assets and Liabilities - Total assets increased slightly from $2,005.608 million in August 2023 to $2,020.698 million in May 2024[12] - Merchandise inventories increased from $471.407 million in August 2023 to $516.464 million in May 2024, a growth of 9.6%[12] - Accounts payable increased from $453.229 million in August 2023 to $491.203 million in May 2024, a growth of 8.4%[12] - Retained earnings increased from $817.559 million in August 2023 to $861.158 million in May 2024, a growth of 5.3%[12] Warehouse Club Expansion - The company plans to open one new warehouse club in Cartago, Costa Rica in spring 2025, increasing total clubs to 55[7] - The company operated 54 warehouse clubs as of May 31, 2024, compared to 51 in the prior year[28] Foreign Exchange Impact - Foreign currency exchange rate fluctuations positively impacted net merchandise sales by $27.3 million, or 2.5%, compared to the same period last year[27] Diluted Earnings Per Share - Diluted earnings per share for the third quarter of fiscal year 2024 were $1.08, compared to $0.94 in the same period last year[30] - Adjusted net income per diluted share for the three months ended May 31, 2024, was $1.08, compared to $1.04 in the same period in 2023[16]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to COMMISSION FILE NUMBER 000-22793 PriceSmart, Inc. (Exact name of registrant as specified in its charter) Delaware 33-0628530 (State or other j ...