PriceSmart, Inc. (NASDAQ: PSMT) stock rose over 2.4% on 8th Jan (as of 12:55 pm GMT-5; Source: Google finance) after the company posted better than expected results for the first quarter of FY 21. For the first quarter of fiscal year 2021, net merchandise sales grew 7.7% to $838.4 million from $778.7 million in the first quarter of fiscal year 2020. The Company had 46 warehouse clubs in operation at the end of November, 2020 compared to 45 warehouse clubs in operation as of November 30, 2019. Comparable net merchandise sales for the 43 warehouse clubs that have been open for greater than 13 ½ calendar months rose 3.6% for the 13-week period ended November 29, 2020 compared to the comparable period of the prior year. The company reported the net income attributable to PriceSmart was $27.7 million in the first quarter of fiscal year 2021 as compared to $19.7 million in the first quarter of fiscal year 2020.
Meanwhile, during the first quarter, the company expanded our Click and Go contactless shopping program, which offers for ordering online and curbside pickup, and as of Q1, includes delivery options in all of the markets. The company continues to improve operating efficiencies while making appropriate investments. Together, these initiatives have contributed to an increase in the operating income of 45.0% to $44.5 million.
Further, the company plans to proceed with the construction of its 48th warehouse club in Guatemala City, Guatemala, expected to open in the fall 2021, and its 49th warehouse club in Portmore, Jamaica, expected to open in spring of 2022. In June 2019, the Company had acquired nearly 150,000 square feet of land in Cayalá (Zone 5 municipality), southeast of Guatemala City, Guatemala, where it plans to build its fifth club in Guatemala. In September 2019, the Company had acquired approximately 218,000 square feet of land in Portmore, a suburb west of the capital of Jamaica, where it plans to build its second club in Jamaica.
PSMT in the first quarter of FY 21 has reported the adjusted earnings per share of 90 cents, beating the analysts’ estimates for the adjusted earnings per share of 68 cents. The company had reported the adjusted revenue growth of 8.1 percent to $877.4 million in the first quarter of FY 21, beating the analysts’ estimates for revenue of $837.4 million. The Company delivered operating income during the fiscal first quarter of $44.5 million compared to operating income of $30.7 million in the prior year period.