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PriceSmart (PSMT) Reports Impressive Sales Numbers for April
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PriceSmart, Inc. (PSMT - Free Report) reverted to a positive comparable net merchandise sales (comps) trend with impressive metrics for April, after a plunge of 5.9% witnessed in March. Despite the pandemic-led uncertainties and restrictions across various markets, comps for the four weeks ended Apr 25, 2021, increased 25.3% year over year for 45 warehouse clubs. Comps were hurt by foreign-currency fluctuations to the tune of $3.4 million or 1.7%.
Further, the company’s net merchandise sales in April rose 22% to $263.4 million from $216 million registered in the year-earlier period. However, foreign currency exchange fluctuations hurt sales by $3.4 million or 1.6%. Notably, the company witnessed rising demand in non-food categories in the quarter under review, mainly electronics and apparel. Also, the company has been maintaining a robust on-hand inventory.
For the fiscal year-to-date period, including eight months ended Apr 30, 2021, net merchandise sales rose 6.2% to $2,307.8 million from $2,172.5 million a year ago. Foreign currency fluctuations hurt the metric by 2.9% or $62.4 million. For the 34-week period ended Apr 25, 2021, comps improved 3.3% year over year, with foreign-currency fluctuations affecting comps by 2.9% or $60.6 million.
Furthermore, management notified that PriceSmart’s membership base and 12-month renewal rate are growing strongly. Markedly, the 12-month renewal rate came in at 86.1% for the period ended Apr 30, 2021. This reflects growth from increase of 81.5% and 80.5% in 12-month renewal rate recorded for the periods ended Feb 28, 2021 and Aug 31, 2020, respectively.
We note that PriceSmart is making solid omni-channel efforts to improve service and deliver great convenience to members. Its Click & Go service, including curbside pickup and delivery facilities, bodes well. Currently, the company operates 47 warehouse clubs across 12 countries and one U.S. territory. A glimpse at the company’s price performance reveals that shares of this membership-shopping warehouse club operator have rallied 12.3% in the past three months compared with the industry’s 5.2% rise.
Tapestry (TPR - Free Report) boasts a long-term earnings growth rate of 10% and currently flaunts a Zacks Rank #2 (Buy).
L Brands , also a Zacks Rank #2 stock, has a long-term earnings-growth rate of 13%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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PriceSmart (PSMT) Reports Impressive Sales Numbers for April
PriceSmart, Inc. (PSMT - Free Report) reverted to a positive comparable net merchandise sales (comps) trend with impressive metrics for April, after a plunge of 5.9% witnessed in March. Despite the pandemic-led uncertainties and restrictions across various markets, comps for the four weeks ended Apr 25, 2021, increased 25.3% year over year for 45 warehouse clubs. Comps were hurt by foreign-currency fluctuations to the tune of $3.4 million or 1.7%.
Further, the company’s net merchandise sales in April rose 22% to $263.4 million from $216 million registered in the year-earlier period. However, foreign currency exchange fluctuations hurt sales by $3.4 million or 1.6%. Notably, the company witnessed rising demand in non-food categories in the quarter under review, mainly electronics and apparel. Also, the company has been maintaining a robust on-hand inventory.
For the fiscal year-to-date period, including eight months ended Apr 30, 2021, net merchandise sales rose 6.2% to $2,307.8 million from $2,172.5 million a year ago. Foreign currency fluctuations hurt the metric by 2.9% or $62.4 million. For the 34-week period ended Apr 25, 2021, comps improved 3.3% year over year, with foreign-currency fluctuations affecting comps by 2.9% or $60.6 million.
Furthermore, management notified that PriceSmart’s membership base and 12-month renewal rate are growing strongly. Markedly, the 12-month renewal rate came in at 86.1% for the period ended Apr 30, 2021. This reflects growth from increase of 81.5% and 80.5% in 12-month renewal rate recorded for the periods ended Feb 28, 2021 and Aug 31, 2020, respectively.
We note that PriceSmart is making solid omni-channel efforts to improve service and deliver great convenience to members. Its Click & Go service, including curbside pickup and delivery facilities, bodes well. Currently, the company operates 47 warehouse clubs across 12 countries and one U.S. territory. A glimpse at the company’s price performance reveals that shares of this membership-shopping warehouse club operator have rallied 12.3% in the past three months compared with the industry’s 5.2% rise.
Don’t Miss These Solid Retail Bets
Abercrombie & Fitch (ANF - Free Report) has a long-term earnings growth rate of 18% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry (TPR - Free Report) boasts a long-term earnings growth rate of 10% and currently flaunts a Zacks Rank #2 (Buy).
L Brands , also a Zacks Rank #2 stock, has a long-term earnings-growth rate of 13%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>