PriceSmart, Inc. (NASDAQ:PSMT) stock rose 6.59% (As on January 10, 11:31:25 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. For the first quarter of fiscal year 2024, net merchandise sales increased 10.7% to $1.14 billion from $1.03 billion in the first quarter of fiscal year 2023. Net merchandise sales – constant currency increased 6.8% over the comparable prior year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $40.0 million, or 3.9%, versus the same period in the prior year. Comparable net merchandise sales for the 50 warehouse clubs that have been open for greater than 13 ½ calendar months increased 8.0% for the 13-week period ended December 3, 2023 compared to the comparable 13-week period of the prior year. The Company recorded operating income during the fiscal first quarter of $58.2 million compared to operating income of $55.5 million in the prior year period. Adjusted net income for the first quarter of fiscal year 2024 rose 15.5% to $38.0 million, compared to adjusted net income of $35.0 million, in the comparable prior year period. Adjusted EBITDA for the first quarter of fiscal year 2024 was $77.8 million compared to $75.2 million in the same period last year.

PSMT in the first quarter of FY 24 has reported the adjusted earnings per share of $1.24, beating the analysts’ estimates for the adjusted earnings per share of $1.12. The company had reported the adjusted revenue growth of 10.6 percent to $1.17 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.07 billion. The Company had 53 warehouse clubs in operation as of November 30, 2023 compared to 50 warehouse clubs in operation as of November 30, 2022, with plans to open another in February 2024. The upcoming warehouse club opening in El Salvador is expected to further bolster the company’s presence and performance in the region. The balance sheet of Pricesmart Inc remained strong, with total assets increasing to $2.03 billion from $2.01 billion. Current assets stood at $880.8 million, while long-term restricted cash and property and equipment also saw increases. The company’s liabilities and equity showed a well-managed financial structure, with total stockholders’ equity at $1.08 billion. From the cash flow perspective, the company’s cash and cash equivalents decreased to $174.5 million from $239.9 million, which may reflect its investment in expansion and operational activities.