Feb 28, 2023

Pricesmart Q2 2023 Earnings Report

Pricesmart's financial performance was marked by solid growth in sales and earnings, alongside enhanced inventory turnover and a robust balance sheet.

Key Takeaways

PriceSmart reported a 10.0% increase in total revenues, reaching $1.14 billion, and a net income of $31.3 million, or $1.02 per diluted share, for the second quarter of fiscal year 2023. Adjusted net income was $38.5 million, or $1.25 per diluted share. The company plans to open its fourth warehouse club in El Salvador in early 2024.

Total revenues increased by 10.0% to $1.14 billion compared to the prior year.

Net merchandise sales grew by 10.3% to $1.12 billion.

Comparable net merchandise sales increased by 8.5% for the 13-week period ended March 5, 2023.

Net income attributable to PriceSmart decreased slightly to $31.3 million, or $1.02 per diluted share.

Total Revenue
$1.14B
Previous year: $1.04B
+9.9%
EPS
$1.25
Previous year: $1.03
+21.4%
Gross Profit
$198M
Previous year: $177M
+12.1%
Cash and Equivalents
$261M
Previous year: $179M
+46.0%
Free Cash Flow
$57.1M
Previous year: -$25.3M
-325.7%
Total Assets
$1.89B
Previous year: $1.77B
+6.4%

Pricesmart

Pricesmart

Pricesmart Revenue by Segment

Forward Guidance

PriceSmart is planning to expand its operations by opening new warehouse clubs in multiple locations.

Positive Outlook

  • Plans to open a fourth warehouse club in Santa Ana, El Salvador in early 2024.
  • Anticipates operating 54 warehouse clubs once the new club in El Salvador is open.
  • Plans to open two warehouse clubs in El Salvador.
  • Plans to open a warehouse club in Medellín, Colombia.
  • Plans to open a warehouse club in Escuintla, Guatemala.

Revenue & Expenses

Visualization of income flow from segment revenue to net income