Operating Results and Corporate Updates PriceSmart reported strong financial growth for the third quarter and first nine months of fiscal year 2025, driven by significant increases in net merchandise and comparable sales, despite negative foreign currency impacts | Metric | Q3 FY2025 Growth | YTD FY2025 Growth | | :--- | :--- | :--- | | Net Merchandise Sales | 8.0% | 7.2% | | Comparable Net Merchandise Sales | 7.0% | 6.5% | | Net Income | 8.2% | 6.0% | | Diluted EPS | $1.14 (vs $1.08) | $3.80 (vs $3.62) | Financial Performance Summary PriceSmart reported strong financial growth for the third quarter and first nine months of fiscal year 2025, with significant increases in net merchandise and comparable sales, and improved net income and earnings per share Third Quarter Fiscal 2025 Results In the third quarter of fiscal 2025, PriceSmart's total revenues grew by 7.1% to $1.32 billion, driven by an 8.0% increase in net merchandise sales, leading to net income of $35.2 million and diluted earnings per share of $1.14 | Metric | Q3 FY2025 | Q3 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1.32 billion | $1.23 billion | 7.1% | | Net Merchandise Sales | $1.29 billion | $1.19 billion | 8.0% | | Operating Income | $56.2 million | $49.9 million | 12.6% | | Net Income | $35.2 million | $32.5 million | 8.2% | | Diluted EPS | $1.14 | $1.08 | 5.6% | | Adjusted EBITDA | $79.0 million | $71.0 million | 11.3% | - Comparable net merchandise sales for the 13-week period increased by 7.0%, or 8.5% on a constant currency basis5 - Foreign currency exchange rate fluctuations negatively impacted net merchandise sales by $18.6 million, or 1.5%3 Year-to-Date Fiscal 2025 Results For the first nine months of fiscal 2025, total revenues increased by 6.8% to $3.94 billion, with net merchandise sales growing by 7.2%, and net income rising 6.0% to $116.3 million, resulting in diluted earnings per share of $3.80 | Metric | YTD FY2025 | YTD FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3.94 billion | $3.69 billion | 6.8% | | Net Merchandise Sales | $3.85 billion | $3.59 billion | 7.2% | | Operating Income | $179.8 million | $171.7 million | 4.7% | | Net Income | $116.3 million | $109.8 million | 6.0% | | Diluted EPS | $3.80 | $3.62 | 5.0% | | Adjusted EBITDA | $245.1 million | $232.9 million | 5.2% | - Comparable net merchandise sales for the 39-week period increased by 6.5%, or 7.6% on a constant currency basis8 - Foreign currency exchange rate fluctuations negatively impacted year-to-date net merchandise sales by $38.0 million, or 1.0%7 Strategic Initiatives and Outlook PriceSmart is actively pursuing growth through new market entry and expansion within existing territories, with plans to open two new clubs and evaluate Chile as a potential new market - The company is currently evaluating Chile as a potential new market for multiple warehouse clubs and is actively looking for sites11 - PriceSmart operates 55 clubs and plans to open two more: one in Guatemala in August 2025 and one in the Dominican Republic in spring 2026, bringing the total to 57 clubs14 New Market Expansion: Chile PriceSmart is seriously considering expansion into Chile, a potential new market, actively searching for suitable locations for warehouse clubs and distribution facilities, contingent upon successful site acquisition and necessary permits - The Company is actively evaluating Chile as a potential new market for multiple warehouse clubs11 - Expansion into Chile is subject to finding appropriate sites, ongoing market analysis, and receiving required governmental permits11 Company Overview and Store Footprint As of May 31, 2025, PriceSmart operates 55 U.S.-style membership warehouse clubs across 12 countries and one U.S. territory, with two new clubs scheduled to open by spring 2026, increasing its total operational footprint to 57 clubs - PriceSmart operates 55 warehouse clubs in 12 countries and one U.S. territory214 - The company plans to open a new club in Quetzaltenango, Guatemala in August 2025 and another in La Romana, Dominican Republic in the spring of 202614 Financial Statements PriceSmart's financial statements show a strengthening balance sheet and increased profitability for both the third quarter and first nine months of fiscal 2025 Consolidated Statements of Income The Consolidated Statements of Income detail a year-over-year increase in total revenues and net income for both the third quarter and the first nine months of fiscal 2025, driven by higher net merchandise sales and membership income, with improved operating income | (In thousands) | Q3 FY2025 | Q3 FY2024 | YTD FY2025 | YTD FY2024 | | :--- | :--- | :--- | :--- | :--- | | Net merchandise sales | $1,289,997 | $1,194,531 | $3,848,411 | $3,590,461 | | Total revenues | $1,317,289 | $1,229,428 | $3,939,119 | $3,687,853 | | Operating income | $56,230 | $49,909 | $179,760 | $171,740 | | Net income | $35,158 | $32,489 | $116,346 | $109,807 | Consolidated Balance Sheets As of May 31, 2025, PriceSmart's balance sheet strengthened, with total assets increasing to $2.14 billion from $2.02 billion at the end of fiscal 2024, supported by higher cash and merchandise inventories, and an increase in total stockholders' equity to $1.21 billion | (In thousands) | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $167,961 | $125,364 | | Merchandise inventories | $553,123 | $528,678 | | Total Current Assets | $900,779 | $832,347 | | Total Assets | $2,144,440 | $2,022,694 | | Total Current Liabilities | $701,786 | $680,148 | | Total Liabilities | $930,247 | $899,729 | | Total Stockholders' Equity | $1,214,193 | $1,122,965 | Non-GAAP Financial Measures The company utilizes non-GAAP financial measures, including Adjusted EBITDA and constant currency sales, to provide a clearer view of its underlying operational performance by adjusting for non-core items and foreign exchange fluctuations Reconciliation of Adjusted EBITDA The company uses Adjusted EBITDA, a non-GAAP measure, to provide insight into its core operating performance, with Q3 FY2025 Adjusted EBITDA increasing to $79.0 million and year-to-date reaching $245.1 million, reflecting adjustments for non-core expenses | (In thousands) | Q3 FY2025 | Q3 FY2024 | YTD FY2025 | YTD FY2024 | | :--- | :--- | :--- | :--- | :--- | | Net income as reported | $35,158 | $32,489 | $116,346 | $109,807 | | Adjustments | $43,838 | $38,552 | $128,787 | $123,129 | | Adjusted EBITDA | $78,996 | $71,041 | $245,133 | $232,936 | Reconciliation of Constant Currency Sales To isolate underlying business growth from foreign exchange volatility, the company provides sales data on a constant currency basis, showing stronger operational performance with constant currency net merchandise sales growth of 9.5% in Q3 FY2025 and 8.2% year-to-date Net Merchandise Sales Growth Reconciliation | Period | Reported Growth | FX Impact | Constant Currency Growth | | :--- | :--- | :--- | :--- | | Three Months Ended | 8.0% | (1.5)% | 9.5% | | Nine Months Ended | 7.2% | (1.0)% | 8.2% | Comparable Net Merchandise Sales Growth Reconciliation | Period | Reported Growth | FX Impact | Constant Currency Growth | | :--- | :--- | :--- | :--- | | Thirteen Weeks Ended | 7.0% | (1.5)% | 8.5% | | Thirty-Nine Weeks Ended | 6.5% | (1.1)% | 7.6% |
PriceSmart(PSMT) - 2025 Q3 - Quarterly Results