Back to top

Analyst Blog

PriceSmart, Inc. (PSMT - Snapshot Report) announced net and comparable warehouse club sales for the month of May. Net warehouse club sales for the month grew 7.9% to $202.3 million.

Further, PriceSmart reported 2.3% growth in comps in 31 warehouse clubs for the five weeks ended Jun 1, 2014. May comps slowed down from the 4.6% increase reported in April.

Comps have been soft in all the months so far this year – 2.3% in May, 4.6% in April, 1.9% in March, 5.3% in February and 8.4% in January. In fact, PriceSmart’s comps have been declining since Oct 2013 — from the high teen/low double-digit comps seen in 2012 and high single-digit in 2013 — due to slowing consumer traffic. Severe winter affected traffic further in the last reported quarter — second-quarter 2014. Comps grew 6.7% in the second quarter, weaker than 7.9%, 9.3% and 9.2% in the first quarter of 2014 and fourth and third quarters of fiscal 2013, respectively.

PriceSmart is involved in the operation of membership shopping warehouses in international markets. At the end of May 2014, the company had 33 warehouse clubs in operation.

The company is due to report third-quarter fiscal 2014 results on Jul 10. The Zacks Consensus Estimate for the quarter stands at 70 cents. We are not expecting a positive earnings beat this quarter from PriceSmart as the stock carries a Zacks Rank #3 (Hold) and a negative Earnings ESP of-5.71%.

Other Stocks to Consider

Currently, no stocks carry a Zacks Rank #1 (Strong Buy) or  #2 (Buy) in the retail discount industry as severe winter tremendously affected sales and margins in the last reported quarter. Better-ranked stocks in the broader retail sector include American Apparel, Inc. (APP - Snapshot Report), Foot Locker, Inc. (FL - Snapshot Report) and The Men's Wearhouse, Inc. (MW - Snapshot Report). All these stocks sport a Zacks Rank #2.

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%