We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 Reports Rise in March Comps, Expects Soft Traffic
Read MoreHide Full Article
PriceSmart, Inc. (PSMT - Free Report) continued with its positive comparable net merchandise sales (comps) performance during the month of March. Despite adverse impacts of foreign currency fluctuations to the tune of $6.9 million or 3%, comps for the four weeks ended Mar 29, 2020 surged 15.7% for 41 warehouse clubs. Notably, this marks the third straight month of comps improvement. Prior to this, comps had risen 1% and 0.3% in February and January, respectively.
Apart from impressive comps performance, net merchandise sales during the month under review rose 17.1% to $306.1 million from $261.5 million in the year-ago period. This follows an increase of 11.7% in February and 3.9% in January. However, currency-rate fluctuations negatively impacted the metric by $7.7 million or 2.5%.
Management highlighted that as members stock up food and essentials in the wake of coronavirus outbreak, overall sales shot up in the month of March. However, management pointed out that following the potential 'shelter in place' advisories sales moderated and later declined in the second half of the month. Traffic fell drastically toward the later part of the month owing to the restrictions imposed by the government and as people started practicing social distancing. PriceSmart anticipates traffic and sales to remain soft in the coming few months, thanks to the pandemic and related restrictions on business activities.
Nonetheless, keeping in mind the limitations on the operations of clubs, restrictions on segments of the population permitted to shop on particular days, and limits on the number of people that can be in a club, PriceSmart has undertaken strategic initiatives. The company is focusing on alternative shopping channels comprising an online catalog that provides customers almost real-time information on products available in all clubs, and curbside pickup and home delivery or any third-party delivery services. The company is also launching "Click and Go” business model that allows consumers to shop and place orders online and then pick-up at club.
Additionally, the company is undertaking every measure to improve financial liquidity amid coronavirus-induced crisis that has disrupted economic activities globally. Management stated that it has postponed the opening of warehouse club in Liberia, Costa Rica. We note that the construction of the same is slated to be completed in May 2020. Further, in view of the prevailing scenario, the company has decided to suspend or not to start the construction work for previously announced future warehouse club openings on land acquired in Bogota and Bucaramanga, Colombia, and Jamaica.
Shares of this membership shopping warehouse clubs operator have fallen 17% in the past three months compared with the industry’s decline of 12.3%.
Build-A-Bear Workshop (BBW - Free Report) reported a positive earnings surprise in the last reported quarter. It sports a Zacks Rank #1.
Costco (COST - Free Report) has a long-term earnings growth rate of 8.4%. The stock carries a Zacks Rank #2 (Buy).
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Image: Bigstock
PriceSmart Reports Rise in March Comps, Expects Soft Traffic
PriceSmart, Inc. (PSMT - Free Report) continued with its positive comparable net merchandise sales (comps) performance during the month of March. Despite adverse impacts of foreign currency fluctuations to the tune of $6.9 million or 3%, comps for the four weeks ended Mar 29, 2020 surged 15.7% for 41 warehouse clubs. Notably, this marks the third straight month of comps improvement. Prior to this, comps had risen 1% and 0.3% in February and January, respectively.
Apart from impressive comps performance, net merchandise sales during the month under review rose 17.1% to $306.1 million from $261.5 million in the year-ago period. This follows an increase of 11.7% in February and 3.9% in January. However, currency-rate fluctuations negatively impacted the metric by $7.7 million or 2.5%.
Management highlighted that as members stock up food and essentials in the wake of coronavirus outbreak, overall sales shot up in the month of March. However, management pointed out that following the potential 'shelter in place' advisories sales moderated and later declined in the second half of the month. Traffic fell drastically toward the later part of the month owing to the restrictions imposed by the government and as people started practicing social distancing. PriceSmart anticipates traffic and sales to remain soft in the coming few months, thanks to the pandemic and related restrictions on business activities.
Nonetheless, keeping in mind the limitations on the operations of clubs, restrictions on segments of the population permitted to shop on particular days, and limits on the number of people that can be in a club, PriceSmart has undertaken strategic initiatives. The company is focusing on alternative shopping channels comprising an online catalog that provides customers almost real-time information on products available in all clubs, and curbside pickup and home delivery or any third-party delivery services. The company is also launching "Click and Go” business model that allows consumers to shop and place orders online and then pick-up at club.
Additionally, the company is undertaking every measure to improve financial liquidity amid coronavirus-induced crisis that has disrupted economic activities globally. Management stated that it has postponed the opening of warehouse club in Liberia, Costa Rica. We note that the construction of the same is slated to be completed in May 2020. Further, in view of the prevailing scenario, the company has decided to suspend or not to start the construction work for previously announced future warehouse club openings on land acquired in Bogota and Bucaramanga, Colombia, and Jamaica.
Shares of this membership shopping warehouse clubs operator have fallen 17% in the past three months compared with the industry’s decline of 12.3%.
Check These 3 Stocks
Sprouts Farmers Market (SFM - Free Report) has a trailing four-quarter positive earnings surprise of 28.7%, on average. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Build-A-Bear Workshop (BBW - Free Report) reported a positive earnings surprise in the last reported quarter. It sports a Zacks Rank #1.
Costco (COST - Free Report) has a long-term earnings growth rate of 8.4%. The stock carries a Zacks Rank #2 (Buy).
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>