PriceSmart Inc (NASDAQ:PSMT) stock rose 6.32% (As on April 10, 11:36:09 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second-quarter results, with earnings and revenue surpassing analyst estimates. Net merchandise sales increased 5.8% to $1.33 billion, or 7.0% on a constant currency basis. Comparable net merchandise sales for clubs open for more than 13 ½ months grew 6.7%, or 7.9% in constant currency terms. The company noted that foreign currency fluctuations negatively impacted net merchandise sales by $14.7 million, or 1.2%, compared to the same period last year. PriceSmart expanded its footprint during the quarter, opening its ninth warehouse club in Costa Rica. The company now operates 55 clubs across 12 countries and one U.S. territory. The new warehouse club occupies a six-acre property in Cartago, approximately 10 miles east from the nearest clubs in the greater San Jose metropolitan area. Net income increased 11.4% to $43.8 million, in the second quarter of fiscal year 2025 compared to $39.3 million, in the second quarter of fiscal year 2024, while adjusted EBITDA increased to $87.0 million from $84.1 million in the prior-year period. The Company recorded operating income during the fiscal second quarter of $65.3 million compared to operating income of $63.6 million in the prior-year period. Comparable net merchandise sales for the 53 warehouse clubs that have been open for greater than 13 ½ calendar months increased 6.7% for the 13-week period ended March 2, 2025 compared to the comparable 13-week period of the prior year.

PSMT in the second quarter of FY25 has reported the adjusted earnings per share of $1.45, beating the analysts’ estimates for the adjusted earnings per share of $1.40. The company had reported the adjusted revenue growth of 5.6 percent to $1.36 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $1.34 billion.

Additionally, the company announced an 8.6% increase to its annual dividend and the results of the Company’s 2025 annual meeting of stockholders that was held on February 6, 2025.

On the other hand, PSMT announced that Robert Price has notified the Board of Directors of his intention to step down as Interim Chief Executive Officer effective August 31, 2025. David Price, the Company’s current Executive Vice President and Chief Transformation Officer and member of the Board of Directors, will become Chief Executive Officer effective September 1, 2025. Robert Price will become Executive Chairman of the Board of Directors.