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PriceSmart Outperforms Earnings Estimates in Q1 Fiscal 2024, Boosted by Revenue Growth and Comp Sales Increase

AInvestTuesday, Jan 9, 2024 7:11 pm ET
1min read

$PSMT(PSMT)

PriceSmart, Inc. (NASDAQ: PSMT), a leading operator of 53 warehouse clubs in 12 countries and one U.S. territory, recently reported its first-quarter (Nov) earnings for the fiscal year 2024. The company beat analysts' expectations by reporting earnings per share of $1.24, $0.15 better than the two-analyst estimate of $1.09. Revenues also rose by 10.6% year/year to $1.17 billion, surpassing the single-analyst estimate of $1.16 billion.

One of the key drivers of PriceSmart's strong performance was the impressive 8.0% increase in comparable net merchandise sales, which reflects growth in sales at stores that have been open for more than 13 ½ calendar months. This growth is a significant improvement from the comparable prior year period's increase of 4.3% in constant currency.

The company's revenue growth was bolstered by the addition of three new warehouse clubs during the quarter, bringing the total number of warehouse clubs to 53. Net merchandise sales increased by 10.7% to $1.14 billion, with net merchandise sales - constant currency increasing by 6.8%. Foreign currency exchange rate fluctuations positively impacted net merchandise sales by $40.0 million, or 3.9%, versus the same period in the prior year.

Operating income for the first quarter of fiscal year 2024 was $58.2 million, compared to $55.5 million in the prior year period. Net income increased by 15.5% to $38.0 million, or $1.24 per diluted share, compared to $32.9 million, or $1.05 per diluted share, in the first quarter of fiscal year 2023. Adjusted net income for the first quarter of fiscal year 2024 was $38.0 million, or an adjusted $1.24 per diluted share, compared to adjusted net income of $35.0 million, or an adjusted $1.12 per diluted share, in the comparable prior year period. Adjusted EBITDA for the first quarter of fiscal year 2024 was $77.8 million, compared to $75.2 million in the same period last year.

The company's strong earnings report demonstrates its ability to adapt and thrive in a challenging economic environment. PriceSmart's continuous expansion and focus on enhancing customer experience has contributed to its impressive growth in comparable net merchandise sales. The company's robust financial performance is a testament to its strategic initiatives and commitment to delivering value to its shareholders.

In conclusion, PriceSmart's first-quarter earnings report showcases the company's resilience and growth potential. The company's ability to outperform analysts' expectations and deliver strong revenue growth, along with its consistent expansion efforts, makes it an attractive investment opportunity. Investors should closely monitor PriceSmart's performance and ongoing strategic initiatives to capitalize on the company's growth potential in the coming quarters.


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