Back to top

Analyst Blog

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.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%