PriceSmart(US:PSMT)2021-07-09 19:15Financial Data and Key Metrics Changes - For Q3 FY 2021, total revenues were $895.3 million, and net merchandise sales were $857.5 million, representing increases of 11.9% and 11.6% respectively compared to the prior year [38] - The trailing 12-month membership renewal rate improved to 87.6% from 82.5% a year ago, indicating a recovery in membership accounts [8][29] - Net income for Q3 FY 2021 was $22.5 million, or $0.73 per diluted share, compared to $12.7 million, or $0.41 per diluted share in the prior year [54] Business Line Data and Key Metrics Changes - Non-foods category sales grew by 41% compared to the same quarter last year, with hardline category sales increasing by approximately 31% [15] - The overall softline category grew by 66%, with casual apparel and basic apparel growing by 84% and 86% respectively [16] - The fresh category grew by 8%, with poultry, meat, and gourmet deli leading the growth at 21%, 13%, and 13% respectively [18] Market Data and Key Metrics Changes - In Central America, net merchandise sales increased by 17.7%, with a 16% increase in comparable net merchandise sales [39] - The Caribbean region saw a decline in total net merchandise sales by 2.9%, primarily due to challenges in Trinidad, where comparable net merchandise sales declined by 21.8% [41][42] - Colombia experienced a 22.4% increase in net merchandise sales, despite civil unrest and COVID-19 restrictions impacting normal commerce [45] Company Strategy and Development Direction - The company is focused on a multi-year growth plan that includes expanding its brick-and-mortar footprint and enhancing its e-commerce platform to create a seamless omni-channel experience [34] - Investments in talent, technology, and analytics are aimed at improving operational efficiencies and understanding member preferences [9][34] - The company plans to expand its private label product offerings and identify opportunities for vertical integration [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about FY 2021, noting a rebound in memberships and foot traffic in most markets [34] - The company is prepared for ongoing supply chain disruptions and inflationary pressures, with strategic inventory investments to mitigate potential future price increases [22][23][35] - Management highlighted the importance of adapting to changing consumer behaviors and maintaining a focus on delivering value to members [10][34] Other Important Information - The company is constructing a new smaller format warehouse club in Bucaramanga, Colombia, expected to open in fall 2021, along with additional clubs in Guatemala and Jamaica [32] - The company has expanded its member wellness initiatives, including optical centers and pharmacy services, to enhance member offerings [33] Q&A Session Summary Question: Update on Trinidad's situation - Management noted a slight easing of restrictions in Trinidad, allowing for the sale of additional essential goods, with hopes for further flexibility as the virus spread slows [61][62] Question: Impact of oil prices on liquidity in Trinidad - Management indicated that improvements in the economy, including oil prices, could lead to better liquidity conditions, but caution was advised due to historical trends [63][64] Question: Future spending on technology and talent - Management emphasized the importance of continued investment in technology and talent to build capacities for long-term growth, while monitoring spending closely [65]