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Feb 29, 2020
Pricesmart Q2 2020 Earnings Report
Pricesmart's Q2 2020 earnings increased due to revenue growth.
Key Takeaways
PriceSmart reported a 6.1% increase in total revenues, reaching $906.7 million, and net income attributable to PriceSmart was $25.6 million, or $0.85 per diluted share.
Total revenues increased by 6.1% to $906.7 million.
Net merchandise sales increased by 6.3% to $871.7 million.
Operating income increased to $38.8 million, compared to $36.5 million in the prior year.
Net income attributable to PriceSmart was $25.6 million, or $0.85 per diluted share.
Forward Guidance
The company expects the impact of the pandemic and the related varied restrictions on operations to adversely affect traffic and sales over the next few months. They are proactively taking steps to access and preserve cash available on-hand, including drawing funds on short-term facilities and delaying strategic capital expenditures.
Positive Outlook
- Introducing an online catalog that enables members to see, almost real-time, the availability of products for all clubs.
- Launched curbside pickup and home delivery in coordination with third-party delivery services for certain warehouse clubs.
- Launching online ordering and pick-up at club, referred to as “Click and Go.”
- Offering a “drive-through” alternative with a limited offering of basic goods where significant limitations exist.
- Committed to ensuring members have essential items during this difficult time.
Challenges Ahead
- Impact of the pandemic and related restrictions on operations expected to adversely affect traffic and sales.
- Proactively taking steps to access and preserve cash available on-hand, including drawing funds on short-term facilities and delaying strategic capital expenditures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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