PriceSmart Q3 Earnings Miss Estimates, Net Merchandise Sales Up 8% Y/Y

PriceSmart, Inc. PSMT posted third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year. However, earnings missed the Zacks Consensus Estimate.PriceSmart’s third-quarter results reflect steady progress in its core membership warehouse club business, underscoring the resilience of its model amid currency volatility and broader macroeconomic challenges. The company remains focused on expanding its footprint and evaluating new market opportunities to drive long-term growth.A key highlight was the announcement that PriceSmart is evaluating Chile as a potential new market for multiple warehouse clubs, demonstrating its commitment to strategic expansion and future growth.PriceSmart, Inc. Price, Consensus and EPS Surprise PriceSmart, Inc. price-consensus-eps-surprise-chart | PriceSmart, Inc. QuoteMore on PriceSmart’s Q3 ResultsThis operator of membership warehouse clubs reported adjusted earnings per share of $1.14 in the quarter under review, which missed the Zacks Consensus Estimate of $1.16. However, this metric increased 5.6% from $1.08 per share in the year-earlier quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total revenues of $1.32 billion increased 7.1% from the prior-year quarter. The company’s net merchandise sales of $1.29 billion climbed 8% from the year-ago period. On a constant currency basis, the metric rose 9.5%. Notably, foreign currency exchange fluctuations negatively impacted sales by $18.6 million, or 1.5%. Membership income of $21.9 million rose 13.4% from the year-ago period.PriceSmart reported a 7% increase in comparable net merchandise sales for 13 weeks ending June 1, 2025, compared with the same period the previous year. On a constant currency basis, the metric rose 8.5%. Foreign currency exchange fluctuations contributed to a 1.5% decline in comparable net merchandise sales growth during the period.PSMT Stock Past Three-Month PerformanceImage Source: Zacks Investment ResearchSneak Peek Into PSMT’s MarginsFor the fiscal third quarter, PriceSmart’s selling, general and administrative expenses totaled $172.8 million, up 8.4% from $159.5 million in the year-ago quarter. As a percentage of total revenues, SG&A expenses represented approximately 13.1%, up 10 basis points from 13% in the prior-year quarter. The slight increase reflects higher operating costs associated with the company’s larger club footprint, wage and benefit inflation, and continued investment in strategic initiatives.Operating income during the fiscal third quarter was $56.2 million, up from $49.9 million in the prior-year period. The operating margin improved 20 basis points year over year to approximately 4.3%. Adjusted EBITDA was $79 million, up 11.2% from $71 million in the year-ago quarter. The adjusted EBITDA margin for the quarter was approximately 6%, up 20 basis points year over year. The improvement was driven by higher merchandise sales, membership income growth, and operating leverage despite foreign currency headwinds.PriceSmart’s Financial Health SnapshotThe company ended the quarter with cash and cash equivalents of $168 million, long-term debt (net of current portion) of $86.2 million and total shareholders’ equity of $1.21 billion.The company had 55 warehouse clubs in operation as of May 31, 2025, compared with 54 warehouse clubs in operation as of May 31, 2024.Shares of this Zacks Rank #3 (Hold) company have gained 8.9% in the past three months compared with the industry’s growth of 1.4%.Key PicksSome better-ranked stocks in the retail space are Canada Goose GOOS, Stitch Fix SFIX and Allbirds Inc. BIRD.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Stitch Fix’s current fiscal year’s earnings implies growth of 71.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It presently carries a Zacks Rank of 2.The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PriceSmart, Inc. (PSMT): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis Report Allbirds, Inc. (BIRD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks