Membership shopping warehouse club, PriceSmart which operates in over 12 markets a US Territory, has announced that it has earned total revenues of $1.03 billion for the fiscal third quarter of 2022, which ended on May 31, 2022.
These results were achieved in a quarter where PriceSmart not only opened its 50th club in Portmore, Jamaica but also set a new record for its membership base of over 1.75 million accounts.
The company plans to expand to further Latin American and Caribbean countries such as El Salvador and Columbia.
“We have taken decisive action, and continue to do so, to swiftly sell through excess inventory and quickly rebalance our inventory mix. As a result, we have experienced higher than normal markdowns. Our plan is to handle this quickly and efficiently in order to be well-positioned for the holiday season. Although it is likely we will see some margin pressure in the fourth quarter, we believe it will be far less than the third quarter. We see this as a point in time. We have gained many new important insights. We expect soon to return to our healthy, historical margin structures.
Comments from Sherry S. Bahrambeygui, Chief Executive Officer
“While dealing with short-term challenges with inventory, we are making good progress on initiatives intended to support our plans for medium and long-term growth. The team remains focused on our plan to drive growth through expansion of our global real estate footprint, by increasing the value of the membership, and by driving incremental sales through PriceSmart.com and through the creation of additional technology capabilities.”
Comments from Sherry S. Bahrambeygui, Chief Executive Officer
Key Takeaways from the Results
- Total revenues for the third quarter of the fiscal year 2022 increased 15.1% to $1.03 billion compared to $895.3 million in the comparable period of the prior year.
- net merchandise sales increased 16.5% to $999.0 million from $857.5 million in the third quarter of fiscal year 2021.
- Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $19.1 million, or 2.3%, versus the same period in the prior year.
- 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.
- 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.
- Net income attributable to PriceSmart was $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 the fiscal year 2021
Coming to San Miguel,El Salvador
It has purchased land in the City of San Miguel, El Salvador which will be the third warehouse club in El Salvador. This new club will be built on a five-acre property in the Hacienda San Andrés area and is anticipated to open in the spring of 2023.
Coming to Medellín, Columbia
PriceSmarts expansion plans don’t end there, the company also plans to have a warehouse club in Medellín, Colombia in the summer of 2023. They have already begun construction on this warehouse club in the affluent El Poblado area of Medellín, Colombia. This club will be the second club in Medellín and the Company’s tenth warehouse club in Colombia
These two clubs will bring their total warehouse clubs to 52 PriceSmart club warehouses.
PriceSmart operates 50 warehouse clubs in 12 countries and one U.S. territory (nine in Colombia; eight in Costa Rica; seven in Panama; five in the Dominican Republic and Guatemala, four in Trinidad; three in Honduras; two each in El Salvador, Nicaragua, and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands).
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Tuesday, July 12, 2022, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialling (855) 209-8211 toll-free or (412) 317-5214 for international callers and asking to join the PriceSmart, Inc. call. A digital replay will be available through July 19, 2022, following the conclusion of the call by dialling (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering replay passcode 6291871.
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