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Aug 31, 2020
Pricesmart Q4 2020 Earnings Report
Reported strong results despite shopping limitations.
Key Takeaways
PriceSmart's Q4 results showed a revenue increase of 1.2% to $810.6 million, with net income at $20.1 million, despite challenges from COVID-19 related shopping restrictions. The company saw progress in technology-enabled shopping, with online ordering and curbside pickup contributing 3.6% of net merchandise sales.
Total revenues increased by 1.2% to $810.6 million.
Net income attributable to PriceSmart was $20.1 million, or $0.65 per diluted share.
Net merchandise sales increased 0.5% to $772.9 million.
Comparable net merchandise sales decreased 4.0% for warehouse clubs open for greater than 13.5 calendar months.
Pricesmart
Pricesmart
Forward Guidance
PriceSmart is focused on executing a successful holiday season and continues to grow on many dimensions, including the expected opening of their 47th club in early December.
Positive Outlook
- Technology-enabled shopping and omni-channel initiatives are progressing
- Click & Go™ contactless online ordering and curbside pickup service available in all markets
- Delivery option available in six markets at fiscal year-end
- New club opening expected in early December
- Development of better in-bound and outbound online communication channels
Challenges Ahead
- Significant shopping limitations imposed by local governments
- Approximately 260 club days lost due to in-club shopping restrictions
- Comparable net merchandise sales decreased 4.0%
- Foreign currency exchange rate fluctuations impacted net merchandise sales negatively
- Operating income decreased compared to the prior year