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Retail warehouse stores operator, PriceSmart, Inc. (PSMT - Snapshot Report), recently reported net sales and comparable sales figures for the month of Oct 2013.

Oct 2013 Results

Net warehouse club sales grew 13.0% to $195.4 million for the month. Further, PriceSmart reported 8.8% year-over-year increase in comparable warehouse sales (comps) for 29 warehouse clubs for the four weeks ended Oct 27, 2013. PriceSmart’s October comps were lower than 9.1% and 8.9% growth seen in September and August, respectively. In fact, comps were also slightly lower than the 9%+ growth witnessed every month since April this year and much below PriceSmart’s past trend of double-digit growth.

Headquartered in San Diego, PriceSmart is involved in the operation of membership shopping warehouses in international markets. It had 32 warehouse clubs in operation at the end of Oct 2013.

PriceSmart sells good-quality basic consumer products at affordable prices. Slow economic recovery and low employment levels have led the consumers to shy away from high-priced brands. The company has, thus, been able to reap the benefits of this recent trend with its lower-priced brands and the private-label merchandise.

PriceSmart reported mixed fourth-quarter and fiscal 2013 results on Oct 30. While the company beat the Zacks Consensus Estimate for earnings in the fourth quarter, it missed the same for revenues.

Other Stocks to Consider

PriceSmart carries a Zacks Rank #2 (Buy). Other stocks in the retail/discount industry that are worth considering include The TJX Companies, Inc. (TJX - Analyst Report) and Big Lots Inc. (BIG - Analyst Report). Both the companies carry the same Zacks Rank as PriceSmart. In the broader retail sector, Fossil Group, Inc (FOSL - Analyst Report), carrying a Zacks Rank #2, is also doing well and is worth considering.

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