PRICESMART ANNOUNCES FISCAL 2025 SECOND QUARTER OPERATING RESULTS AND OPENING OF NINTH WAREHOUSE CLUB IN COSTA RICA
NET MERCHANDISE SALES GREW 5.8%COMPARABLE NET MERCHANDISE SALES INCREASED 6.7% $1.45 EARNINGS PER DILUTED SHARE
SAN DIEGO, April 9, 2025 /PRNewswire/ -- PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ:PSMT), operator of 55 warehouse clubs in 12 countries and one U.S. territory, today announced results for the fiscal second quarter of 2025, which ended on February 28, 2025.
Second Quarter Financial Results
Total revenues for the second quarter of fiscal year 2025 increased 5.6% to $1.36 billion compared to $1.29 billion in the comparable period of the prior year. For the second quarter of fiscal year 2025, net merchandise sales increased 5.8% to $1.33 billion from $1.26 billion in the second quarter of fiscal year 2024. Net merchandise sales - constant currency increased 7.0% over the comparable prior-year period. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $14.7 million, or 1.2%, versus the same period in the prior year.
The Company had 54 warehouse clubs in operation as of February 28, 2025 and February 29, 2024.
Comparable net merchandise sales for the 53 warehouse clubs that have been open for greater than 13 ½ calendar months increased 6.7% for the 13-week period ended March 2, 2025 compared to the comparable 13-week period of the prior year. Comparable net merchandise sales - constant currency for the 13 weeks ended March 2, 2025 increased 7.9%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 1.2% versus the same period in the prior year.
The Company recorded operating income during the fiscal second quarter of $65.3 million compared to operating income of $63.6 million in the prior-year period. Net income increased 11.4% to $43.8 million, or $1.45 per diluted share, in the second quarter of fiscal year 2025 compared to $39.3 million, or $1.31 per diluted share, in the second quarter of fiscal year 2024.
Adjusted EBITDA for the second quarter of fiscal year 2025 was $87.0 million compared to $84.1 million in the same period last year.
Year-to-Date Financial Results
Total revenues for the six months ended February 28, 2025 increased 6.6% to $2.62 billion compared to $2.46 billion in the comparable period of the prior year. For the first six months of fiscal year 2025, net merchandise sales increased 6.8% to $2.56 billion from $2.40 billion in the comparable prior-year period. Net merchandise sales - constant currency increased 7.6% over the comparable prior year period. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $19.4 million, or 0.8%, versus the same period in the prior year.
Comparable net merchandise sales for the 53 warehouse clubs that have been open for greater than 13 ½ calendar months increased 6.2% for the 26-week period ended March 2, 2025 compared to the comparable 26-week period of the prior year. Comparable net merchandise sales - constant currency for the 26 weeks ended March 2, 2025 increased 7.1%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 0.9% versus the same period in the prior year.
The Company recorded operating income during the first six months of fiscal year 2025 of $123.5 million compared to operating income of $121.8 million in the prior-year period. Net income increased 5.0% to $81.2 million, or $2.66 per diluted share, in the first six months of fiscal year 2025 compared to $77.3 million, or $2.54 per diluted share, in the first six months of fiscal year 2024.
Adjusted EBITDA for the first six months of fiscal year 2025 was $166.1 million compared to $161.9 million in the same period last year.
New Club Opening
The Company opened its ninth warehouse club in Costa Rica this month. The new warehouse club occupies a six-acre property in Cartago, approximately 10 miles east from the nearest clubs in the greater San Jose metropolitan area. The Company now operates 55 warehouse clubs in total.
Note Regarding Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
The foregoing discussion of the Company's operating results includes references to adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency, which are non-GAAP financial measures. We believe these supplemental measures are useful to investors and analysts because they exclude items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures later in this document.
Conference Call Information
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, April 10, 2025, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing toll free (800) 549-8228 or (646) 564-2877 for international callers and asking to join the PriceSmart earnings call. A digital replay will be available shortly following the conclusion of the call through Thursday, April 17, 2025 by dialing (888) 660-6264 for domestic callers, or (646) 517-3975 for international callers, and entering replay passcode 70282#.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. PriceSmart operates 55 warehouse clubs in 12 countries and one U.S. territory (ten in Colombia; nine in Costa Rica; seven in Panama; six in Guatemala; five in Dominican Republic; four each in Trinidad and El Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition, the Company plans to open one warehouse club in Quetzaltenango, Guatemala in the summer of 2025. Once this one new club is open, the Company will operate 56 warehouse clubs.
This press release may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, future dividends, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: various political, economic and compliance risks associated with our international operations, adverse changes in economic conditions in our markets, natural disasters, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, our reliance on third party service providers, including those who support transaction and payment processing, data security and other technology services, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member, employee or business information, cost increases from product and service providers, interruption of supply chains, novel coronavirus (COVID-19) related factors and challenges, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the U.S., as well as other risks that are not presently known to the Company or that the Company considers to be immaterial.
For further information, please contact Michael L. McCleary, EVP, Chief Financial Officer and Principal Accounting Officer (858) 404-8826 or send an email to
PRICESMART, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
Six Months Ended
February 28,2025
February 29,2024
February 28,2025
February 29,2024
Revenues:
Net merchandise sales
$ 1,334,555
$ 1,260,916
$ 2,558,414
$ 2,395,930
Export sales
3,987
8,511
13,605
18,520
Membership income
20,915
18,538
41,114
36,287
Other revenue and income
4,429
3,985
8,697
7,688
Total revenues
1,363,886
1,291,950
2,621,830
2,458,425
Operating expenses:
Cost of goods sold:
Net merchandise sales
1,126,335
https://www.benzinga.com/pressreleases/25/04/n44722545/pricesmart-announces-fiscal-2025-second-quarter-operating-results-and-opening-of-ninth-warehouse-c
