PriceSmart, Inc. (NASDAQ:PSMT) profit falls

PriceSmart, Inc. (NASDAQ:PSMT) stock fell 8.31% (As on July 12, 11:46:11 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 22 has reported Net income attributable to PriceSmart of $19.3 million, or $0.62 per diluted share, in the third quarter of fiscal year 2022 as compared to $22.5 million, or $0.73 per diluted share, in the third quarter of fiscal year 2021. Total revenues for the third quarter of fiscal year 2022 increased 15.1% to $1.03 billion compared to $895.3 million in the comparable period of the prior year. For the third quarter of fiscal year 2022, net merchandise sales increased 16.5% to $999.0 million from $857.5 million in the third quarter of fiscal year 2021. Comparable net merchandise sales for the 47 warehouse clubs that have been open for greater than 13 ½ calendar months increased 12.8% for the 13-week period ended May 29, 2022 compared to the comparable period of the prior year. The Company recorded operating income during the fiscal third quarter of $33.8 million compared to operating income of $36.0 million in the prior year period. The Company had 50 warehouse clubs in operation as of May 31, 2022 compared to 47 warehouse clubs in operation as of May 31, 2021.

Meanwhile, PriceSmart has purchased land and plans to open its third warehouse club in El Salvador, located in the city of San Miguel, approximately 100 miles east of the capital city San Salvador. The small format club will be built on a five acre property located in the Hacienda San Andrés area and is anticipated to open in the spring of 2023. In addition, the company has begun construction of a smaller format warehouse club in the affluent El Poblado area of Medellín, Colombia. The company expects to open this warehouse club, which will be our second club in Medellín and the Company’s tenth warehouse club in Colombia, in the summer of 2023. Once these two new clubs are open, the company will operate 52 warehouse clubs.

Additionally, the company is dealing with short-term challenges with inventory, we are making good progress on initiatives intended to support the plans for medium and long-term growth. The team remains focused on the plan to drive growth through expansion of the global real estate footprint, by increasing the value of the membership, and by driving incremental sales through PriceSmart.com

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