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PriceSmart (PSMT) Exhibits Strong Sales Performance in March

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Despite a tough retail competitive landscape,PriceSmart, Inc. (PSMT - Free Report) is witnessing strong sales performance. The company’s net warehouse club sales rose 8.9% to $261.3 million in March 2018, from the year-ago period, following an increase of 6.6% and 6.2% in February and January, respectively. In fact, the rate of growth for net warehouse club sales has been accelerating.

Meanwhile, comparable net warehouse club sales increased 3.5% for the four weeks ended Apr 1, 2018. For the February and January periods, the same increased 4.4% and 0.5% respectively. Further, comparable net warehouse club sales increased 3.2% for the 30-week period ended Apr 1, 2018, compared with the 30-week period a year ago.

Prior to March sales results, this Zacks Rank #3 (Hold) company came out with its second-quarter fiscal 2018 earnings on Apr 5. The company’s earnings per share was in line with the Zacks Consensus Estimate. The company also witnessed year-over-year increase in revenues in the reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PriceSmart, Inc. Price, Consensus and EPS Surprise

PriceSmart, Inc. Price, Consensus and EPS Surprise | PriceSmart, Inc. Quote


Notably, the stock has gained 5.5% since its earnings release. We observed that in a  month, the stock has gained 8.6% outperforming the industry’s growth of 1.2%.

The  Retail - Discount Stores industry, to which PriceSmart belongs, is on a healthy growth trajectory. In a year, the industry which occupies a space in the top 32% (85 out of 265) among the Zacks industries, gained 17.5% outperforming the S&P 500’s growth of 10.9%.

Going by a report of Deloitte, retail market is expected to grow 3.2% to 3.8% in 2018. Rise in disposable income is a major factor driving the market. Considering the bountiful opportunities in this niche we expect PriceSmart to witness higher top-line growth in the coming quarters. Some of the key players in the industry are Burlington Stores (BURL - Free Report) , Costco Wholesale (COST - Free Report) and Big Lots (BIG - Free Report) .

Recently, the company has also acquired Aeropost, Inc. Headquartered in Miami, FL, Aeropost is a cross border logistics provider and online retailer in Latin America and the Caribbean. With this acquisition, we expect the company to bolster revenues further in the near-term.

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