PriceSmart Inc (NASDAQ:PSMT) stock rose 6.72% (As on July 11, 11:15:16 AM UTC-4, Source: Google Finance) after the company reported third-quarter revenue that exceeded analyst expectations. 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%. Membership accounts grew by 4.1% to over 1.9 million, with a 12-month renewal rate of 87%. Digital channel sales increased by 19.3%, reaching a record high of $76.2 million. 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. The company opened its 9th warehouse club in Costa Rica, contributing to its expansion strategy. Average inventory per club increased by 9.4%, leading to higher inventory days on hand. 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.
Moreover, the Company continues to pursue opportunities to add new warehouse clubs in existing markets and to assess opportunities in new markets. In particular, the Company is currently evaluating Chile as a potential new market for multiple PriceSmart warehouse clubs. The Company has hired local consultants to help in this process and is actively looking for potential sites for new warehouse clubs in Chile. However, opening PriceSmart warehouse clubs in Chile remains subject to finding appropriate sites for warehouse clubs and distribution facilities, the results of continuing market analyses and receipt of required governmental permits, among other uncertainties.
PSMT in the third quarter of FY25 has reported the adjusted earnings per share of $1.14, missing the analysts’ estimates for the adjusted earnings per share of $1.15. The company had reported the adjusted revenue growth of 7.1 percent to $1.32 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $1.3 billion.
Additionally, the company has $145.5 million in cash equivalents and restricted cash; $116.9 million in short-term investments. Net Cash Provided by Operating Activities was $126.4 million for the first six months of FY2025.
Meanwhile, the company has appointed Gualberto Hernandez as Executive Vice President and Chief Financial Officer effective from June 1, 2025.