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PriceSmart's August Comps Improve

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

Aug 2013 Results

Net warehouse club sales grew 15.5% to $192.6 million for the month. Further, PriceSmart reported 9.4% year-over-year increase in comparable warehouse sales (comps) for 29 warehouse clubs for the five weeks ended Sep 1, 2013. PriceSmart’s comps returned to the 9%+ growth witnessed every month since April this year after seeing a mild shortfall in July. The retailer’s July comps came in at 8.9%. Though the comps growth rate has improved than what was witnessed in the first three months of the calendar year, they are still below PriceSmart’s past trend of double-digit growth.

For the 12 months ended Aug 31, 2013, net sales grew 12.0% to $2.24 billion. Comps grew 9.0% for the 52-week period ended Sep 1, 2013.

PriceSmart, headquartered in San Diego, is involved in the operation of membership shopping warehouses in international markets. It had 31 warehouse clubs in operation at the end of August.

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.

Other Stocks to Consider

PriceSmart carries a Zacks Rank #3 (Hold). Other stocks in the retail/discount industry that are worth considering include Dollar General Corporation (DG - Free Report) and Ross Stores Inc. (ROST - Free Report) . Both the companies carry a Zacks Rank #2 (Buy). In the broader consumer staples sector, Pinnacle Foods Inc. (PF - Free Report) is worth considering as it carries a Zacks Rank #1 (Strong Buy).

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