PRICESMART ANNOUNCES FISCAL 2026 THIRD QUARTER OPERATING RESULTS; PLANS FOR FIRST CLUB IN CHILE; ELEVENTH CLUB IN COSTA RICA
Rhea-AI Summary
PriceSmart (NASDAQ: PSMT) reported fiscal Q3 2026 results with total revenues up 12.5% to $1.48 billion and net merchandise sales up 12.5% to $1.45 billion. Comparable net merchandise sales rose 10.7%. Diluted EPS was $1.28 versus $1.14 a year earlier.
For the first nine months, revenues grew 10.7% to $4.36 billion and diluted EPS reached $4.18. The company plans its first club in Chile and its eleventh club in Costa Rica, both targeted for spring 2027, which would help bring the network to 63 clubs.
Positive
- Q3 2026 total revenues rose 12.5% to $1.48 billion
- Q3 comparable net merchandise sales increased 10.7%
- Q3 diluted EPS grew to $1.28 from $1.14
- Nine‑month revenues up 10.7% to $4.36 billion
- Adjusted EBITDA increased to $90.4 million in Q3 and $277.0 million year‑to‑date
- Planned first club in Chile and eleventh club in Costa Rica by spring 2027
Negative
- Warehouse club and other SG&A expenses rose to $144.3 million from $125.7 million
- Other expense, net increased to $10.5 million from $7.2 million in Q3
- Q3 interest expense rose to $3.9 million from $2.8 million
- Merchandise inventories increased to $623.1 million from $560.7 million
News Market Reaction – PSMT
In the Jul 9 session, PSMT declined 0.45%, reflecting a mild negative market reaction. Argus tracked a peak move of +7.8% during that session. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 08 | 2Q26 earnings results | Positive | +2.9% | Revenue, EPS and Adjusted EBITDA grew while expanding club footprint in Guatemala. |
| Jan 07 | 1Q26 earnings results | Positive | +4.5% | High-single-digit constant currency growth and EPS of $1.29 with strong comps. |
| Oct 30 | 4Q25 earnings results | Positive | -6.5% | Solid revenue and sales growth but shares fell despite higher Adjusted EBITDA. |
| Jul 10 | 3Q25 earnings results | Positive | +5.3% | Strong Q3 sales and earnings plus signaling Chile as a potential new market. |
| Apr 30 | FY24 ESG report | Positive | -0.0% | ESG progress and expansion plan but essentially flat share reaction afterward. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have generally produced modest positive stock reactions, though there are occasional sharp divergences on similarly strong reports.
Key Terms
adjusted ebitda financial
net merchandise sales - constant currency financial
comparable net merchandise sales - constant currency financial
generally accepted accounting principles financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NET MERCHANDISE SALES GREW
COMPARABLE NET MERCHANDISE SALES INCREASED
Third Quarter Financial Results
Total revenues for the third quarter of fiscal year 2026 increased
The Company had 57 warehouse clubs in operation as of May 31, 2026 compared to 55 warehouse clubs in operation as of May 31, 2025.
Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased
The Company recorded operating income during the fiscal third quarter of
Adjusted EBITDA for the third quarter of fiscal year 2026 was
Year-to-Date Financial Results
Total revenues for the nine months ended May 31, 2026 increased
Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased
The Company recorded operating income during the first nine months of fiscal year 2026 of
Adjusted EBITDA for the first nine months of fiscal year 2026 was
New Market Growth -
The Company has executed a lease and plans to open its first warehouse club in
"We are excited to announce our planned entry into
Existing Market Expansion
The Company has purchased land and plans to open its eleventh warehouse club in
Once these two clubs and four other previously announced clubs are open, the Company will operate 63 warehouse clubs.
Note Regarding Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
The foregoing discussion of the Company's operating results includes references to Adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency, which are non-GAAP financial measures. We believe these supplemental measures are useful to investors and analysts because they exclude items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures later in this document.
Conference Call Information
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, July 9, 2026, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing toll free (800) 715-9871 for domestic callers or +1 (646) 307-1963 for international callers and asking to join the PriceSmart earnings call. A digital replay will be available shortly following the conclusion of the call through Thursday, July 16, 2026, by dialing +1 (800) 770-2030 for domestic callers or +1 (647) 362-9199 for international callers and entering replay passcode 5898084#.
About PriceSmart
PriceSmart, headquartered in
This press release may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, future dividends, omni-channel initiatives, proposed warehouse club and distribution center openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: various political, economic and compliance risks associated with our international operations, including the effects of tariffs and/or international trade wars and disruptions to remittances, adverse changes in economic conditions in our markets, natural disasters, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, including the timely opening of our announced warehouse clubs, our reliance on third party service providers, including those who support transaction and payment processing, data security and other technology services, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member, employee or business information, cost increases from product and service providers, interruption of supply chains, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the U.S., as well as other risks that are not presently known to the Company or that the Company considers to be immaterial.
For further information, please contact Investor Relations (858) 404-8826 or send an email to ir@pricesmart.com.
PRICESMART, INC. | |||||||
Three Months Ended | Nine Months Ended | ||||||
May 31, | May 31, | May 31, | May 31, | ||||
Revenues: | |||||||
Net merchandise sales | $ 1,450,698 | $ 1,289,997 | $ 4,271,024 | $ 3,848,411 | |||
Export sales | 637 | 990 | 1,123 | 14,595 | |||
Membership income | 25,709 | 21,857 | 73,588 | 62,971 | |||
Other revenue and income | 4,749 | 4,445 | 14,315 | 13,142 | |||
Total revenues | 1,481,793 | 1,317,289 | 4,360,050 | 3,939,119 | |||
Operating expenses: | |||||||
Cost of goods sold: | |||||||
Net merchandise sales | 1,218,984 | 1,086,680 | 3,587,294 | 3,242,892 | |||
Export sales | 590 | 957 | 1,079 | 13,770 | |||
Selling, general and administrative: | |||||||
Warehouse club and other operations | 144,302 | 125,745 | 415,581 | 367,832 | |||
General and administrative | 51,405 | 47,070 | 150,455 | 132,669 | |||
Pre-opening expenses | 579 | 302 | 626 | 617 | |||
Loss on disposal of assets | 292 | 305 | 1,027 | 1,579 | |||
Total operating expenses | 1,416,152 | 1,261,059 | 4,156,062 | 3,759,359 | |||
Operating income | 65,641 | 56,230 | 203,988 | 179,760 | |||
Other income (expense): | |||||||
Interest income | 3,259 | 2,486 | 9,840 | 7,441 | |||
Interest expense | (3,850) | (2,762) | (12,229) | (7,995) | |||
Other expense, net | (9,913) | (6,888) | (24,079) | (19,050) | |||
Total other expense | (10,504) | (7,164) | (26,468) | (19,604) | |||
Income before provision for income taxes and | 55,137 | 49,066 | 177,520 | 160,156 | |||
Provision for income taxes | (15,446) | (13,917) | (48,572) | (43,797) | |||
Income (loss) of unconsolidated affiliates | — | 9 | — | (13) | |||
Net income | $ 39,691 | $ 35,158 | $ 128,948 | $ 116,346 | |||
Net income per share available for distribution: | |||||||
Basic | $ 1.28 | $ 1.14 | $ 4.19 | $ 3.80 | |||
Diluted | $ 1.28 | $ 1.14 | $ 4.18 | $ 3.80 | |||
Shares used in per share computations: | |||||||
Basic | 30,241 | 30,070 | 30,213 | 30,050 | |||
Diluted | 30,270 | 30,078 | 30,232 | 30,055 | |||
PRICESMART, INC. | |||
May 31, | August 31, | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 208,443 | $ 241,024 | |
Short-term restricted cash | 10,355 | 11,061 | |
Short-term investments | 113,748 | 73,186 | |
Receivables, net of allowance for credit losses of | 19,837 | 17,400 | |
Merchandise inventories | 623,052 | 560,730 | |
Prepaid expenses and other current assets (includes | 88,287 | 71,059 | |
Total current assets | 1,063,722 | 974,460 | |
Long-term restricted cash | 35,824 | 33,206 | |
Property and equipment, net | 1,112,996 | 996,281 | |
Operating lease right-of-use assets, net | 125,382 | 113,479 | |
Goodwill | 43,293 | 43,238 | |
Deferred tax assets | 44,516 | 41,229 | |
Other non-current assets (includes | 93,470 | 60,375 | |
Investment in unconsolidated affiliates | — | 6,889 | |
Total Assets | $ 2,519,203 | $ 2,269,157 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Short-term borrowings | $ 3,445 | $ 12,286 | |
Accounts payable | 556,665 | 506,949 | |
Accrued salaries and benefits | 58,159 | 52,478 | |
Deferred income | 50,500 | 43,061 | |
Income taxes payable | 1,402 | 7,265 | |
Other accrued expenses and other current liabilities (includes | 67,937 | 57,627 | |
Operating lease liabilities, current portion | 7,888 | 7,930 | |
Dividends payable | 21,683 | — | |
Long-term debt, current portion | 65,335 | 38,675 | |
Total current liabilities | 833,014 | 726,271 | |
Deferred tax liability | 738 | 1,100 | |
Long-term income taxes payable, net of current portion | 4,551 | 4,424 | |
Long-term operating lease liabilities | 134,421 | 122,244 | |
Long-term debt, net of current portion | 114,365 | 147,922 | |
Other long-term liabilities (includes | 39,706 | 19,824 | |
Total Liabilities | 1,126,795 | 1,021,785 | |
Stockholders' Equity: | |||
Common stock | 3 | 3 | |
Additional paid-in capital | 542,116 | 529,354 | |
Accumulated other comprehensive loss | (109,267) | (161,439) | |
Retained earnings | 1,085,064 | 999,426 | |
Less: treasury stock at cost, 1,957,470 shares as of May 31, 2026 and 1,942,214 shares | (125,508) | (119,972) | |
Total Stockholders' Equity | 1,392,408 | 1,247,372 | |
Total Liabilities and Equity | $ 2,519,203 | $ 2,269,157 | |
Non–GAAP (Generally Accepted Accounting Principles) Financial Measures
The accompanying Consolidated Financial Statements are presented in accordance with
Adjusted EBITDA
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes and depreciation and amortization, adjusted for the impact of certain other items, including interest income and other income (expense), net. The following is a reconciliation of our Net income to Adjusted EBITDA for the periods presented:
Three Months Ended | Nine Months Ended | ||||||
(Amounts in thousands) | May 31, | May 31, | May 31, | May 31, | |||
Net income as reported | $ 39,691 | $ 35,158 | $ 128,948 | $ 116,346 | |||
Adjustments: | |||||||
Interest expense | 3,850 | 2,762 | 12,229 | 7,995 | |||
Provision for income taxes | 15,446 | 13,917 | 48,572 | 43,797 | |||
Depreciation and amortization | 24,778 | 22,757 | 73,027 | 65,386 | |||
Interest income | (3,259) | (2,486) | (9,840) | (7,441) | |||
Other expense, net (1) | 9,913 | 6,888 | 24,079 | 19,050 | |||
Adjusted EBITDA | $ 90,419 | $ 78,996 | $ 277,015 | $ 245,133 | |||
(1) | Primarily consists of transaction costs of converting the local currencies into available tradable currencies in some of our countries with liquidity issues and foreign currency losses or gains due to the revaluation of monetary assets and liabilities (primarily |
Net Merchandise Sales - Constant Currency and Comparable Net Merchandise Sales – Constant Currency
As a multinational enterprise, we are exposed to changes in foreign currency exchange rates. The translation of the operations of our foreign-based entities from their local currencies into
Net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
May 31, 2026 | |||||||
Three Months Ended | Nine Months Ended | ||||||
(Amounts in thousands, except % growth) | Net | % Growth | Net | % Growth | |||
Net merchandise sales | $ 1,450,698 | 12.5 % | $ 4,271,024 | 11.0 % | |||
Favorable impact of foreign currency exchange | 50,562 | 4.0 % | 92,097 | 2.4 % | |||
Net merchandise sales on a constant-currency basis | $ 1,400,136 | 8.5 % | $ 4,178,927 | 8.6 % | |||
Comparable net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
May 31, 2026 | |||
Thirteen Weeks | Thirty-Nine Weeks | ||
% Growth | % Growth | ||
Comparable net merchandise sales | 10.7 % | 8.8 % | |
Favorable impact of foreign currency exchange | 3.8 % | 2.4 % | |
Comparable net merchandise sales on a constant-currency basis | 6.9 % | 6.4 % | |
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SOURCE PriceSmart, Inc.