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]