PriceSmart shares soar as revenue tops estimates

Published 10/07/2025, 21:12
PriceSmart shares soar as revenue tops estimates

Investing.com -- PriceSmart , Inc. (NASDAQ:PSMT) reported third-quarter revenue that exceeded analyst expectations, sending shares surging 13% despite a slight earnings miss.

The warehouse club operator posted revenue of $1.32 billion for its fiscal third quarter ended May 31, 2025, beating the consensus estimate of $1.3 billion and representing a 7.1% increase from $1.23 billion in the same period last year. However, earnings per share came in at $1.14, just below the analyst estimate of $1.15. Net income rose 8.2% to $35.2 million compared to $32.5 million in the year-ago quarter.

On a constant currency basis, net merchandise sales increased 9.5% over the prior-year period, while comparable sales for clubs open more than 13½ months rose 7.0%, or 8.5% on a constant currency basis. Foreign currency fluctuations negatively impacted net merchandise sales by 1.5%.

"Our strong revenue growth this quarter demonstrates the resilience of our business model and the value we provide to our members," said Robert Price, CEO of PriceSmart. "Despite currency headwinds, we’ve maintained solid comparable sales growth across our markets."

The company operated 55 warehouse clubs across 12 countries and one U.S. territory as of May 31, 2025, up from 54 clubs a year earlier. PriceSmart also revealed it is evaluating Chile as a potential new market for multiple warehouse clubs, having hired local consultants and actively searching for potential sites.

Operating income for the quarter increased to $56.2 million from $49.9 million in the prior-year period, while adjusted EBITDA rose to $79.0 million from $71.0 million last year.

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