May 31, 2023

Pricesmart Q3 2023 Earnings Report

Pricesmart's Q3 2023 performance was marked by revenue growth and increased profitability.

Key Takeaways

PriceSmart reported a 6.4% increase in total revenues, reaching $1.10 billion, and a 7.1% increase in net merchandise sales, totaling $1.07 billion. Net income attributable to PriceSmart increased by 53.6% to $29.6 million, or $0.94 per diluted share. The company also announced a $75 million stock repurchase program.

Total revenues increased by 6.4% to $1.10 billion.

Net merchandise sales grew by 7.1% to $1.07 billion.

Comparable net merchandise sales increased by 5.8%.

Net income attributable to PriceSmart increased 53.6% to $29.6 million, or $0.94 per diluted share.

Total Revenue
$1.1B
Previous year: $1.03B
+6.4%
EPS
$1.02
Previous year: $0.62
+64.5%
Gross Profit
$184M
Previous year: $161M
+14.2%
Cash and Equivalents
$223M
Previous year: $208M
+7.3%
Free Cash Flow
$24.5M
Previous year: $34.1M
-28.4%
Total Assets
$1.93B
Previous year: $1.79B
+7.9%

Pricesmart

Pricesmart

Pricesmart Revenue by Segment

Forward Guidance

PriceSmart plans to open new warehouse clubs in Medellín, Colombia, Escuintla, Guatemala, and Santa Ana, El Salvador, anticipating a future count of 54 operating clubs.

Positive Outlook

  • Expansion into new markets with warehouse club openings.
  • Interim CEO's declined compensation expected to positively impact expenses.
  • Focus on high quality merchandise and services at low prices.
  • Stock repurchase program.
  • Strong performance in net merchandise sales.

Challenges Ahead

  • Political and economic risks associated with international operations.
  • Volatility in currency exchange rates.
  • Potential disruptions in supply chains.
  • Cybersecurity breach risks.
  • Competition in the industry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income