Wed, Apr 9, 8:04 PM (17 days ago)
### PriceSmart, Inc. (PSMT) Q2 2025 Financial Summary **Financial Performance:** - **Revenue:** Total revenues increased by 5.6% to $1,363,886,000. Net merchandise sales rose by 5.8% to $1,334,555,000. - **Profit Margins:** Total gross margins increased by 5.0%, with merchandise gross profits at 15.6% of net merchandise sales, a slight decrease of 0.1% from the previous year. - **Operating Income:** Increased by 2.6% to $65,270,000. - **Net Income:** Increased by 10.5% to $43,760,000, or $1.45 per diluted share. - **Cash Flow:** Net cash provided by operating activities was $126,385,000. **Segment Performance:** - **Central America:** Net merchandise sales increased by 5.4%, contributing significantly to overall growth. - **Caribbean:** Saw a 6.4% increase in net merchandise sales. - **Colombia:** Experienced a 6.6% increase in net merchandise sales. **Membership and Sales:** - **Membership Income:** Increased by 12.8% to $20,915,000. - **Comparable Sales:** Increased by 6.7% for the 13 weeks ended March 2, 2025. **Currency Impact:** - **Foreign Exchange:** Negative impact of $14,736,000 on net merchandise sales due to currency fluctuations. **Operational Highlights:** - **Warehouse Clubs:** Operates 54 clubs across 12 countries and one U.S. territory. - **Expansion:** Plans to open new clubs in Costa Rica and Guatemala. - **Technology:** Investing in digital and technological capabilities to enhance online shopping and operational efficiency. **Financial Health:** - **Debt:** Maintained compliance with all covenants for short-term and long-term debt facilities. - **Cash Reserves:** Held $145,504,000 in cash and cash equivalents as of February 28, 2025. **Future Outlook:** - **Growth Drivers:** Focus on adding new locations, increasing membership value, and driving incremental sales through digital platforms. - **Challenges:** Economic trends, currency volatility, and political instability in operating regions. **Risk Factors:** - **Economic Uncertainty:** Vulnerable to changes in political and economic conditions, including tariffs and international trade wars. - **Currency Fluctuations:** Significant impact on financial performance due to devaluations and appreciations of local currencies. **Dividends:** - Declared an annual cash dividend of $1.26 per share, with $0.63 paid on February 28, 2025. **Stock Repurchase:** - Completed a $75 million stock repurchase program in the first quarter of fiscal year 2024. **Management Discussion:** - Emphasis on innovation, technology, and member value to drive future growth. - Commitment to operational excellence and community engagement. **Conclusion:** PriceSmart, Inc. demonstrated strong financial performance in Q2 2025, driven by strategic investments in technology and expansion. The company faces challenges from economic and political uncertainties but remains focused on growth and member value.