Pricesmart (PSMT) Reports Fiscal 2025 Third Quarter Operating Earnings Results And Chile As A Potential New Market

July 10, 2025

PriceSmart, Inc. (PSMT) Earnings Results

PriceSmart, Inc. (PSMT) today announced its financial results for the most recent quarter, revealing a strong performance that exceeded expectations. The company reported earnings per share of $1.14, beating the consensus estimate of $1.12, and showcasing a year-over-year increase. Additionally, PriceSmart achieved quarterly revenue of $1.32 billion, surpassing analyst projections by $7.0 million.

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PriceSmart, Inc. (PSMT) Earnings Highlights

Key Highlights:

  • Total revenues for Q3 FY2025 increased by 7.1% to $1.32 billion.
  • Net merchandise sales grew by 8.0% to $1.29 billion.
  • Comparable net merchandise sales increased by 7.0% for the 13-week period ended June 1, 2025.
  • Operating income rose to $56.2 million, up from $49.9 million in the prior year.
  • Net income increased by 8.2% to $35.2 million, or $1.14 per diluted share.
  • The company is evaluating Chile as a potential new market for warehouse clubs.

PriceSmart, Inc. reported strong financial results for the third quarter of fiscal year 2025, with total revenues reaching $1.32 billion, a 7.1% increase compared to the same period last year. Net merchandise sales also saw a significant rise of 8.0%, amounting to $1.29 billion. The company noted that foreign currency fluctuations negatively impacted sales by $18.6 million, or 1.5%. Comparable net merchandise sales for clubs open for over 13 months increased by 7.0%, with a constant currency growth of 8.5%. Operating income and net income also showed positive trends, with operating income at $56.2 million and net income at $35.2 million.

Looking ahead, PriceSmart is actively exploring opportunities to expand its footprint, particularly in Chile, where it is assessing potential sites for new warehouse clubs. The company has engaged local consultants to aid in this process, although the opening of new clubs will depend on various factors, including site availability and regulatory approvals. This strategic move reflects PriceSmart’s commitment to growth and its aim to enhance its market presence in Latin America and the Caribbean.

PriceSmart, Inc. (PSMT) Stock Performance

PriceSmart, Inc. (PSMT) has been navigating a challenging financial landscape, as evidenced by its staggering price-to-earnings ratio of 928.73, which raises eyebrows about the stock’s valuation relative to its earnings. Despite a commendable two-year compound annual growth rate (CAGR) of 16.64% in earnings per share, the company’s free cash flow has seen a troubling decline, with a negative CAGR of -23.27%. This juxtaposition suggests that while PriceSmart is managing to grow its earnings, it is struggling to convert that growth into cash, which could be a red flag for investors. The company’s revenue growth of 9.31% over the same period indicates a steady demand for its offerings, yet the net profit margin of just 2.8% highlights the challenges it faces in maintaining profitability. Furthermore, a return on invested capital of 12.51% suggests that while the company is generating some returns, there is significant room for improvement. As the stock price remains stagnant with no notable changes over the past year, investors may be left wondering if the current valuation is justified given the mixed signals from the fundamental metrics. Overall, PriceSmart’s financial performance presents a complex picture, balancing growth potential with pressing cash flow concerns.

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About PriceSmart, Inc. (PSMT)

PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. Its warehouse clubs sell brand name and private label consumer products, essential goods, fresh produce, prepared foods, and fresh-baked goods, as well as provides services, such as optical, tire center, and other ancillary services. The company also operates Click & Go, an e-commerce platform for online ordering, curbside pickup, and delivery services. As of March 29, 2022, it operated 49 warehouse clubs in 12 countries and one U.S. territory. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.


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