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May 31, 2022
Pricesmart Q3 2022 Earnings Report
Pricesmart's financial performance was impacted by global supply chain disruptions and shifts in consumer demands, resulting in increased net merchandise sales and comparable net merchandise sales, but also margin pressure due to higher markdowns.
Key Takeaways
PriceSmart's Q3 2022 results showed a 15.1% increase in total revenues to $1.03 billion. Net merchandise sales grew by 16.5% to $999.0 million, but operating income decreased to $33.8 million from $36.0 million in the prior year. Net income attributable to PriceSmart was $19.3 million, or $0.62 per diluted share, compared to $22.5 million, or $0.73 per diluted share, in the same quarter last year.
Net merchandise sales increased by 16.5% to $999.0 million, despite a 2.3% negative impact from foreign currency exchange rate fluctuations.
Comparable net merchandise sales grew by 12.8% for the 47 warehouse clubs open for over 13.5 calendar months, with a 2.2% negative impact from currency fluctuations.
Operating income was $33.8 million, down from $36.0 million in the prior year period.
Net income attributable to PriceSmart was $19.3 million, or $0.62 per diluted share, compared to $22.5 million, or $0.73 per diluted share, in the prior year.
Revenue by Segment
Forward Guidance
PriceSmart anticipates margin pressure in the fourth quarter, but believes it will be less than in the third quarter and expects to return to historical margin structures soon.
Positive Outlook
- Focus on medium and long-term growth initiatives.
- Expansion of global real estate footprint.
- Increasing the value of membership.
- Driving incremental sales through PriceSmart.com.
- Creation of additional technology capabilities.
Challenges Ahead
- Global supply chain disruption.
- Asia port closures due to COVID.
- Container shortages.
- Higher freight and fuel costs.
- Inflation and sharp changes in consumer demands.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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