We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PriceSmart Q3 Earnings Miss Estimates, Net Merchandise Sales Up 8% Y/Y
Read MoreHide Full Article
Key Takeaways
PriceSmart Q3 EPS grew year over year despite cost pressures and FX headwinds.
Net merchandise sales climbed 8%, with 7% comp growth despite currency impacts.
Adjusted EBITDA increased 11.2% year over year to $79 million.
PriceSmart, Inc. (PSMT - Free Report) posted third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year. However, earnings missed the Zacks Consensus Estimate.
PriceSmart’s third-quarter results reflect steady progress in its core membership warehouse club business, underscoring the resilience of its model amid currency volatility and broader macroeconomic challenges. The company remains focused on expanding its footprint and evaluating new market opportunities to drive long-term growth.
A key highlight was the announcement that PriceSmart is evaluating Chile as a potential new market for multiple warehouse clubs, demonstrating its commitment to strategic expansion and future growth.
PriceSmart, Inc. Price, Consensus and EPS Surprise
This operator of membership warehouse clubs reported adjusted earnings per share of $1.14 in the quarter under review, which missed the Zacks Consensus Estimate of $1.16. However, this metric increased 5.6% from $1.08 per share in the year-earlier quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues of $1.32 billion increased 7.1% from the prior-year quarter. The company’s net merchandise sales of $1.29 billion climbed 8% from the year-ago period. On a constant currency basis, the metric rose 9.5%. Notably, foreign currency exchange fluctuations negatively impacted sales by $18.6 million, or 1.5%. Membership income of $21.9 million rose 13.4% from the year-ago period.
PriceSmart reported a 7% increase in comparable net merchandise sales for 13 weeks ending June 1, 2025, compared with the same period the previous year. On a constant currency basis, the metric rose 8.5%. Foreign currency exchange fluctuations contributed to a 1.5% decline in comparable net merchandise sales growth during the period.
PSMT Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Sneak Peek Into PSMT’s Margins
For the fiscal third quarter, PriceSmart’s selling, general and administrative expenses totaled $172.8 million, up 8.4% from $159.5 million in the year-ago quarter. As a percentage of total revenues, SG&A expenses represented approximately 13.1%, up 10 basis points from 13% in the prior-year quarter. The slight increase reflects higher operating costs associated with the company’s larger club footprint, wage and benefit inflation, and continued investment in strategic initiatives.
Operating income during the fiscal third quarter was $56.2 million, up from $49.9 million in the prior-year period. The operating margin improved 20 basis points year over year to approximately 4.3%.
Adjusted EBITDA was $79 million, up 11.2% from $71 million in the year-ago quarter. The adjusted EBITDA margin for the quarter was approximately 6%, up 20 basis points year over year. The improvement was driven by higher merchandise sales, membership income growth, and operating leverage despite foreign currency headwinds.
PriceSmart’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $168 million, long-term debt (net of current portion) of $86.2 million and total shareholders’ equity of $1.21 billion.
The company had 55 warehouse clubs in operation as of May 31, 2025, compared with 54 warehouse clubs in operation as of May 31, 2024.
Shares of this Zacks Rank #3 (Hold) company have gained 8.9% in the past three months compared with the industry’s growth of 1.4%.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Stitch Fix’s current fiscal year’s earnings implies growth of 71.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It presently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PriceSmart Q3 Earnings Miss Estimates, Net Merchandise Sales Up 8% Y/Y
Key Takeaways
PriceSmart, Inc. (PSMT - Free Report) posted third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year. However, earnings missed the Zacks Consensus Estimate.
PriceSmart’s third-quarter results reflect steady progress in its core membership warehouse club business, underscoring the resilience of its model amid currency volatility and broader macroeconomic challenges. The company remains focused on expanding its footprint and evaluating new market opportunities to drive long-term growth.
A key highlight was the announcement that PriceSmart is evaluating Chile as a potential new market for multiple warehouse clubs, demonstrating its commitment to strategic expansion and future growth.
PriceSmart, Inc. Price, Consensus and EPS Surprise
PriceSmart, Inc. price-consensus-eps-surprise-chart | PriceSmart, Inc. Quote
More on PriceSmart’s Q3 Results
This operator of membership warehouse clubs reported adjusted earnings per share of $1.14 in the quarter under review, which missed the Zacks Consensus Estimate of $1.16. However, this metric increased 5.6% from $1.08 per share in the year-earlier quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues of $1.32 billion increased 7.1% from the prior-year quarter. The company’s net merchandise sales of $1.29 billion climbed 8% from the year-ago period. On a constant currency basis, the metric rose 9.5%. Notably, foreign currency exchange fluctuations negatively impacted sales by $18.6 million, or 1.5%. Membership income of $21.9 million rose 13.4% from the year-ago period.
PriceSmart reported a 7% increase in comparable net merchandise sales for 13 weeks ending June 1, 2025, compared with the same period the previous year. On a constant currency basis, the metric rose 8.5%. Foreign currency exchange fluctuations contributed to a 1.5% decline in comparable net merchandise sales growth during the period.
PSMT Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Sneak Peek Into PSMT’s Margins
For the fiscal third quarter, PriceSmart’s selling, general and administrative expenses totaled $172.8 million, up 8.4% from $159.5 million in the year-ago quarter. As a percentage of total revenues, SG&A expenses represented approximately 13.1%, up 10 basis points from 13% in the prior-year quarter. The slight increase reflects higher operating costs associated with the company’s larger club footprint, wage and benefit inflation, and continued investment in strategic initiatives.
Operating income during the fiscal third quarter was $56.2 million, up from $49.9 million in the prior-year period. The operating margin improved 20 basis points year over year to approximately 4.3%.
Adjusted EBITDA was $79 million, up 11.2% from $71 million in the year-ago quarter. The adjusted EBITDA margin for the quarter was approximately 6%, up 20 basis points year over year. The improvement was driven by higher merchandise sales, membership income growth, and operating leverage despite foreign currency headwinds.
PriceSmart’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $168 million, long-term debt (net of current portion) of $86.2 million and total shareholders’ equity of $1.21 billion.
The company had 55 warehouse clubs in operation as of May 31, 2025, compared with 54 warehouse clubs in operation as of May 31, 2024.
Shares of this Zacks Rank #3 (Hold) company have gained 8.9% in the past three months compared with the industry’s growth of 1.4%.
Key Picks
Some better-ranked stocks in the retail space are Canada Goose (GOOS - Free Report) , Stitch Fix (SFIX - Free Report) and Allbirds Inc. (BIRD - Free Report) .
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Stitch Fix’s current fiscal year’s earnings implies growth of 71.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It presently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.