PriceSmart (NASDAQ: PSMT) posts Q2 2026 growth and plans 61 warehouse clubs
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
PriceSmart, Inc. reported solid growth for its fiscal second quarter ended February 28, 2026. Total revenues rose 9.7% to $1.50 billion, driven by a 9.9% increase in net merchandise sales to $1.47 billion. Comparable net merchandise sales grew 7.6%, or 5.5% on a constant-currency basis.
Operating income increased to $75.4 million, while net income climbed 12.2% to $49.1 million, or $1.62 per diluted share, up from $1.45 a year earlier. Adjusted EBITDA reached $99.7 million versus $87.0 million in the prior-year quarter.
The company operated 56 warehouse clubs as of February 28, 2026 and plans five additional clubs, including its eighth club in Guatemala in Villa Nueva, anticipated to open in the spring of 2027. Once these locations open, PriceSmart expects to operate 61 clubs across its markets.
Positive
- Strong revenue and earnings growth: Q2 2026 total revenues increased 9.7% to $1.50 billion, net income rose 12.2% to $49.1 million, and diluted EPS improved to $1.62 from $1.45.
- Robust comparable sales and cash-generation metric: Comparable net merchandise sales grew 7.6% (5.5% constant currency), and Adjusted EBITDA increased to $99.7 million from $87.0 million.
- Continued expansion of club footprint: Operating 56 clubs with five additional locations planned, which would bring the network to 61 warehouse clubs across Latin America and the Caribbean.
Negative
- None.
Insights
PriceSmart delivered broad-based growth and is accelerating club expansion.
PriceSmart showed healthy operating momentum in fiscal Q2 2026. Total revenues grew 9.7% to $1.50 billion, with net merchandise sales up 9.9% and comparable net merchandise sales up 7.6%, indicating both strong traffic and ticket performance across mature clubs.
Profitability improved alongside growth. Operating income increased to $75.4 million from $65.3 million, while net income rose 12.2% to $49.1 million. Adjusted EBITDA reached $99.7 million compared to $87.0 million, reflecting operating leverage even as the company invests in new locations.
Expansion remains a key theme. PriceSmart operated 56 clubs as of February 28, 2026 and has five additional clubs planned, including a newly leased site in Villa Nueva, Guatemala targeting a spring 2027 opening. These additions would take the footprint to 61 clubs, extending the warehouse model deeper into existing markets.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 total revenues: $1.50 billion
Q2 2026 net merchandise sales: $1,466.5 million
Q2 2026 net income: $49.1 million
+5 more
8 metrics
Q2 2026 total revenues
$1.50 billion
Three months ended February 28, 2026; up 9.7% year over year
Q2 2026 net merchandise sales
$1,466.5 million
Increased 9.9% from $1,334.6 million in Q2 2025
Q2 2026 net income
$49.1 million
Up 12.2% from $43.8 million in prior-year quarter
Q2 2026 diluted EPS
$1.62 per share
Improved from $1.45 per diluted share in Q2 2025
Q2 2026 Adjusted EBITDA
$99.7 million
Versus $87.0 million in the same quarter last year
Six-month 2026 total revenues
$2.88 billion
Six months ended February 28, 2026; up 9.8% year over year
Comparable net merchandise sales growth
7.6%
Thirteen weeks ended March 1, 2026; same-club growth versus prior-year period
Warehouse club count
56 clubs (61 planned)
56 operating as of February 28, 2026; five additional clubs announced
Key Terms
Adjusted EBITDA, constant currency, comparable net merchandise sales, non-GAAP financial measures, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the second quarter of fiscal year 2026 was $99.7 million compared to $87.0 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
constant currency financial
"Net merchandise sales - constant currency increased 7.8% over the comparable prior-year period"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
comparable net merchandise sales financial
"Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased 7.6%"
Comparable net merchandise sales measure the change in product sales from locations or channels that were open and selling merchandise in both the current and prior reporting periods, after deducting returns, discounts and allowances. Investors use it to see underlying, “apple-to-apple” demand growth without the distortion from newly opened or closed stores and one-time events, so it’s a clearer gauge of core business momentum.
non-GAAP financial measures financial
"we also provide non-GAAP measures including Adjusted EBITDA, net merchandise sales - constant currency"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
operating income financial
"The Company recorded operating income during the fiscal second quarter of $75.4 million"
Operating income is the profit a company earns from its regular business activities after subtracting the costs directly related to running the business, such as wages, rent, and supplies. It shows how well the core operations are performing, ignoring income or expenses from non-regular activities like investments or one-time events. Investors use it to assess the company's efficiency and profitability from its main work.
warehouse club other
"operator of 56 warehouse clubs in 12 countries and one U.S. territory"
Earnings Snapshot
Total revenues: $1.50 billion
Q2 2026
Total revenues
$1.50 billion
+9.7% year over year
Net merchandise sales
$1.47 billion
+9.9% year over year
Net income
$49.1 million
+12.2% year over year
Diluted EPS
$1.62
up from $1.45 in Q2 2025
Adjusted EBITDA
$99.7 million
up from $87.0 million in Q2 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 8, 2026
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (858 ) 404-8800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2)(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On April 8, 2026, PriceSmart, Inc. issued a press release regarding the results of operations for its second quarter ended February 28, 2026. A copy of the press release is furnished herewith as Exhibit 99.1. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and herein shall be deemed “furnished” and not “filed” for purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section.
Item 9.01. Exhibits.
(d)The following exhibit is furnished herewith:
| Exhibit Number | Description | ||||||||||
| 99.1 | Press Release of PriceSmart, Inc. dated April 8, 2026. | ||||||||||
| 104 | The cover page from this Current report on Form 8-K, formatted in Inline XBRL. | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: April 8, 2026 | /s/ GUALBERTO HERNANDEZ | ||||
| Gualberto Hernandez Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
EXHIBIT INDEX
| Exhibit Number | Description | ||||||||||
| 99.1 | Press Release of PriceSmart, Inc. dated April 8, 2026. | ||||||||||
| 104 | The cover page from this Current report on Form 8-K, formatted in Inline XBRL. | ||||||||||
PRICESMART ANNOUNCES FISCAL 2026 SECOND QUARTER OPERATING RESULTS AND PLANS FOR EIGHTH CLUB IN GUATEMALA
NET MERCHANDISE SALES GREW 9.9%
COMPARABLE NET MERCHANDISE SALES INCREASED 7.6%
$1.62 EARNINGS PER DILUTED SHARE
San Diego, CA (April 8, 2026) - PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT), operator of 56 warehouse clubs in 12 countries and one U.S. territory, today announced results for the fiscal second quarter of 2026, which ended on February 28, 2026.
Second Quarter Financial Results
Total revenues for the second quarter of fiscal year 2026 increased 9.7% to $1.50 billion compared to $1.36 billion in the comparable period of the prior year. For the second quarter of fiscal year 2026, net merchandise sales increased 9.9% to $1.47 billion from $1.33 billion in the second quarter of fiscal year 2025. Net merchandise sales - constant currency increased 7.8% over the comparable prior-year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $27.7 million, or 2.1%, versus the same period in the prior year.
The Company had 56 warehouse clubs in operation as of February 28, 2026 compared to 54 warehouse clubs in operation as of February 28, 2025.
Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased 7.6% for the 13-week period ended March 1, 2026 compared to the comparable 13-week period of the prior year. Comparable net merchandise sales - constant currency for the 13 weeks ended March 1, 2026 increased 5.5%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 2.1% versus the same period in the prior year.
The Company recorded operating income during the fiscal second quarter of $75.4 million compared to operating income of $65.3 million in the prior-year period. Net income increased 12.2% to $49.1 million, or $1.62 per diluted share, in the second quarter of fiscal year 2026 compared to $43.8 million, or $1.45 per diluted share, in the second quarter of fiscal year 2025.
Adjusted EBITDA for the second quarter of fiscal year 2026 was $99.7 million compared to $87.0 million in the same period last year.
Year-to-Date Financial Results
Total revenues for the six months ended February 28, 2026 increased 9.8% to $2.88 billion compared to $2.62 billion in the comparable period of the prior year. For the first six months of fiscal year 2026, net merchandise sales increased 10.2% to $2.82 billion from $2.56 billion in the comparable prior-year period. Net merchandise sales - constant currency increased 8.6% over the comparable prior-year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $41.5 million, or 1.6%, versus the same period in the prior year.
Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased 7.8% for the 26-week period ended March 1, 2026 compared to the comparable 26-week period of the prior year. Comparable net merchandise sales - constant currency for the 26 weeks ended March 1, 2026 increased 6.2%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 1.6% versus the same period in the prior year.
The Company recorded operating income during the first six months of fiscal year 2026 of $138.3 million compared to operating income of $123.5 million in the prior-year period. Net income increased 9.9% to $89.3 million, or $2.91 per diluted share, in the first six months of fiscal year 2026 compared to $81.2 million, or $2.66 per diluted share, in the first six months of fiscal year 2025.
Adjusted EBITDA for the first six months of fiscal year 2026 was $186.6 million compared to $166.1 million in the same period last year.
Plans for New Club
The Company has leased land and plans to open its eighth warehouse club in Guatemala, located in Villa Nueva, approximately 13 miles south from the nearest club in the capital of Guatemala City, subject to all permits being obtained. The club will be built on a five-acre property and is anticipated to open in the spring of 2027. Once this club and four other previously announced clubs are open, the Company will operate 61 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, April 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, April 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 San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and providing services at low prices to PriceSmart Members. PriceSmart operates 56 warehouse clubs in 12 countries and one U.S. territory (ten in Colombia; nine in Costa Rica; seven each in Panama and Guatemala; five in Dominican Republic; four each in Trinidad and El Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition, the Company plans to open one new warehouse club in La Romana, Dominican Republic in May 2026, one warehouse club in each of Montego Bay and South Camp Road (Kingston), Jamaica in the summer and winter of 2026, respectively, one warehouse club in Ciudad Quesada, Costa Rica in the summer of 2026 and one warehouse club in Villa Nueva, Guatemala in the spring of 2027. Once these five new clubs are open, the Company will operate 61 warehouse clubs.
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, 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.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 28, 2026 | February 28, 2025 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Net merchandise sales | $ | 1,466,530 | $ | 1,334,555 | $ | 2,820,326 | $ | 2,558,414 | |||||||||||||||
| Export sales | 359 | 3,987 | 486 | 13,605 | |||||||||||||||||||
| Membership income | 24,459 | 20,915 | 47,879 | 41,114 | |||||||||||||||||||
| Other revenue and income | 4,180 | 4,429 | 9,566 | 8,697 | |||||||||||||||||||
| Total revenues | 1,495,528 | 1,363,886 | 2,878,257 | 2,621,830 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Cost of goods sold: | |||||||||||||||||||||||
| Net merchandise sales | 1,230,128 | 1,126,335 | 2,368,310 | 2,156,212 | |||||||||||||||||||
| Export sales | 327 | 3,800 | 489 | 12,813 | |||||||||||||||||||
| Selling, general and administrative: | |||||||||||||||||||||||
| Warehouse club and other operations | 139,464 | 124,232 | 271,279 | 242,087 | |||||||||||||||||||
| General and administrative | 49,742 | 43,034 | 99,050 | 85,599 | |||||||||||||||||||
| Pre-opening expenses | 45 | 293 | 47 | 315 | |||||||||||||||||||
| Loss on disposal of assets | 402 | 922 | 735 | 1,274 | |||||||||||||||||||
| Total operating expenses | 1,420,108 | 1,298,616 | 2,739,910 | 2,498,300 | |||||||||||||||||||
| Operating income | 75,420 | 65,270 | 138,347 | 123,530 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | 3,632 | 2,735 | 6,581 | 4,955 | |||||||||||||||||||
| Interest expense | (3,959) | (2,538) | (8,379) | (5,233) | |||||||||||||||||||
| Other expense, net | (8,405) | (5,306) | (14,166) | (12,162) | |||||||||||||||||||
| Total other expense | (8,732) | (5,109) | (15,964) | (12,440) | |||||||||||||||||||
| Income before provision for income taxes and loss of unconsolidated affiliates | 66,688 | 60,161 | 122,383 | 111,090 | |||||||||||||||||||
| Provision for income taxes | (17,597) | (16,384) | (33,126) | (29,880) | |||||||||||||||||||
| Loss of unconsolidated affiliates | — | (17) | — | (22) | |||||||||||||||||||
| Net income | $ | 49,091 | $ | 43,760 | $ | 89,257 | $ | 81,188 | |||||||||||||||
| Net income per share available for distribution: | |||||||||||||||||||||||
| Basic | $ | 1.62 | $ | 1.45 | $ | 2.91 | $ | 2.66 | |||||||||||||||
| Diluted | $ | 1.62 | $ | 1.45 | $ | 2.91 | $ | 2.66 | |||||||||||||||
| Shares used in per share computations: | |||||||||||||||||||||||
| Basic | 30,226 | 30,063 | 30,199 | 30,041 | |||||||||||||||||||
| Diluted | 30,245 | 30,068 | 30,212 | 30,044 | |||||||||||||||||||
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
| February 28, 2026 (Unaudited) | August 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 156,249 | $ | 241,024 | |||||||
| Short-term restricted cash | 8,559 | 11,061 | |||||||||
| Short-term investments | 149,712 | 73,186 | |||||||||
Receivables, net of allowance for credit losses of $2 as of February 28, 2026 and August 31, 2025 | 22,953 | 17,400 | |||||||||
| Merchandise inventories | 623,142 | 560,730 | |||||||||
| Prepaid expenses and other current assets | 81,305 | 71,059 | |||||||||
| Total current assets | 1,041,920 | 974,460 | |||||||||
| Long-term restricted cash | 30,279 | 33,206 | |||||||||
| Property and equipment, net | 1,071,674 | 996,281 | |||||||||
| Operating lease right-of-use assets, net | 125,744 | 113,479 | |||||||||
| Goodwill | 43,263 | 43,238 | |||||||||
| Deferred tax assets | 44,468 | 41,229 | |||||||||
Other non-current assets (includes $488 and $701 as of February 28, 2026 and August 31, 2025, respectively, for the fair value of derivative instruments) | 79,410 | 60,375 | |||||||||
| Investment in unconsolidated affiliates | — | 6,889 | |||||||||
| Total Assets | $ | 2,436,758 | $ | 2,269,157 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Short-term borrowings | $ | 3,981 | $ | 12,286 | |||||||
| Accounts payable | 556,342 | 506,949 | |||||||||
| Accrued salaries and benefits | 44,875 | 52,478 | |||||||||
| Deferred income | 49,903 | 43,061 | |||||||||
| Income taxes payable | 4,816 | 7,265 | |||||||||
Other accrued expenses and other current liabilities (includes $2,456 and $551 as of February 28, 2026 and August 31, 2025, respectively, for the fair value of derivative instruments) | 81,509 | 57,627 | |||||||||
| Operating lease liabilities, current portion | 8,129 | 7,930 | |||||||||
| Dividends payable | 21,683 | — | |||||||||
| Long-term debt, current portion | 34,004 | 38,675 | |||||||||
| Total current liabilities | 805,242 | 726,271 | |||||||||
| Deferred tax liability | 764 | 1,100 | |||||||||
| Long-term income taxes payable, net of current portion | 4,489 | 4,424 | |||||||||
| Long-term operating lease liabilities | 134,835 | 122,244 | |||||||||
| Long-term debt, net of current portion | 129,148 | 147,922 | |||||||||
| Other long-term liabilities (includes $5,013 and $6,196 for the fair value of derivative instruments and $14,352 and $13,628 for post-employment plans as of February 28, 2026 and August 31, 2025, respectively) | 29,241 | 19,824 | |||||||||
| Total Liabilities | 1,103,719 | 1,021,785 | |||||||||
| Stockholders' Equity: | |||||||||||
Common stock $0.0001 par value, 45,000,000 shares authorized; 32,852,656 and 32,688,047 shares issued and 30,895,879 and 30,745,833 shares outstanding (net of treasury shares) as of February 28, 2026 and August 31, 2025, respectively | 3 | 3 | |||||||||
| Additional paid-in capital | 536,554 | 529,354 | |||||||||
| Accumulated other comprehensive loss | (123,496) | (161,439) | |||||||||
| Retained earnings | 1,045,373 | 999,426 | |||||||||
Less: treasury stock at cost, 1,956,777 shares as of February 28, 2026 and 1,942,214 shares as of August 31, 2025 | (125,395) | (119,972) | |||||||||
| Total Stockholders' Equity | 1,333,039 | 1,247,372 | |||||||||
| Total Liabilities and Equity | $ | 2,436,758 | $ | 2,269,157 | |||||||
Non–GAAP (Generally Accepted Accounting Principles) Financial Measures
The accompanying Consolidated Financial Statements are presented in accordance with U.S. GAAP (Generally Accepted Accounting Principles). In addition to relevant GAAP measures, we also provide non-GAAP measures including Adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency because management believes these metrics are useful to investors and analysts by excluding items that we do not believe are indicative of our core operating performance. These measures are customary for our industry and commonly used by competitors. However, these non-GAAP financial measures should not be reviewed in isolation or considered as an alternative to any other performance measure derived in accordance with GAAP and may not be comparable to similarly titled measures used by other companies in our industry or across different industries.
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 | Six Months Ended | ||||||||||||||||||||||
| (Amounts in thousands) | February 28, 2026 | February 28, 2025 | February 28, 2026 | February 28, 2025 | |||||||||||||||||||
Net income as reported | $ | 49,091 | $ | 43,760 | $ | 89,257 | $ | 81,188 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Interest expense | 3,959 | 2,538 | 8,379 | 5,233 | |||||||||||||||||||
| Provision for income taxes | 17,597 | 16,384 | 33,126 | 29,880 | |||||||||||||||||||
| Depreciation and amortization | 24,272 | 21,767 | 48,249 | 42,629 | |||||||||||||||||||
| Interest income | (3,632) | (2,735) | (6,581) | (4,955) | |||||||||||||||||||
Other expense, net (1) | 8,405 | 5,306 | 14,166 | 12,162 | |||||||||||||||||||
| Adjusted EBITDA | $ | 99,692 | $ | 87,020 | $ | 186,596 | $ | 166,137 | |||||||||||||||
(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 U.S. dollars) for the three and six months ended February 28, 2026 and 2025.
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 U.S. dollars is sensitive to changes in foreign currency exchange rates and can have a significant impact on our reported financial results. We believe that constant currency is a useful measure, indicating the actual growth of our operations. When we use the term "net merchandise sales – constant currency," it means that we have translated current year net merchandise sales at prior year monthly average exchange rates. Net merchandise sales - constant currency results exclude the effects of foreign currency translation. Similarly, when we use the term "comparable net merchandise sales – constant currency," it means that we have translated current year comparable net merchandise sales at prior year monthly average exchange rates. Comparable net merchandise sales – constant currency results exclude the effects of foreign currency translation. Refer to “Management’s Discussion & Analysis – Net Merchandise Sales” and “Management’s Discussion & Analysis – Comparable Net Merchandise Sales” in our Quarterly Report on Form 10-Q for the period ended February 28, 2026 for our quantitative analysis and discussion. Reconciliations between net merchandise sales – constant currency and comparable net merchandise sales - constant currency and the most directly comparable GAAP measures are included below.
Net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
| February 28, 2026 | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (Amounts in thousands, except % growth) | Net merchandise sales | % Growth | Net merchandise sales | % Growth | |||||||||||||||||||
| Net merchandise sales | $ | 1,466,530 | 9.9 | % | $ | 2,820,326 | 10.2 | % | |||||||||||||||
| Favorable impact of foreign currency exchange | 27,720 | 2.1 | % | 41,536 | 1.6 | % | |||||||||||||||||
| Net merchandise sales on a constant-currency basis | $ | 1,438,810 | 7.8 | % | $ | 2,778,790 | 8.6 | % | |||||||||||||||
Comparable net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
March 1, 2026 | |||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||
| % Growth | % Growth | ||||||||||
Comparable net merchandise sales | 7.6 | % | 7.8 | % | |||||||
| Favorable impact of foreign currency exchange | 2.1 | % | 1.6 | % | |||||||
Comparable net merchandise sales on a constant-currency basis | 5.5 | % | 6.2 | % | |||||||
FAQ
How did PriceSmart (PSMT) perform in its fiscal 2026 second quarter?
PriceSmart delivered solid growth in fiscal 2026 Q2. Total revenues rose 9.7% to $1.50 billion, while net income increased 12.2% to $49.1 million. Diluted earnings per share improved to $1.62, up from $1.45 in the prior-year quarter.
What were PriceSmart (PSMT) comparable net merchandise sales trends in Q2 2026?
Comparable net merchandise sales for PriceSmart’s 54 mature clubs increased 7.6% for the 13-week period ended March 1, 2026. On a constant-currency basis, comparable net merchandise sales grew 5.5%, with foreign exchange adding about 2.1% to reported comparable sales growth.
How did PriceSmart’s profitability change in fiscal 2026 Q2 versus last year?
Profitability improved year over year. Operating income rose from $65.3 million to $75.4 million. Net income increased from $43.8 million to $49.1 million, and Adjusted EBITDA grew from $87.0 million to $99.7 million, reflecting stronger operating leverage.
What are PriceSmart’s year-to-date fiscal 2026 results so far?
For the six months ended February 28, 2026, PriceSmart’s total revenues rose 9.8% to $2.88 billion. Net merchandise sales increased 10.2% to $2.82 billion, and net income reached $89.3 million, or $2.91 per diluted share, up from $2.66 per share.
How is foreign currency affecting PriceSmart (PSMT) sales in fiscal 2026?
Foreign currency movements are currently a tailwind. In Q2 2026, exchange rate fluctuations increased net merchandise sales by $27.7 million, or 2.1%. For the first six months, currency added $41.5 million, or 1.6%, to reported net merchandise sales versus the prior year.
What expansion plans did PriceSmart announce, including the new Guatemala club?
PriceSmart leased land for its eighth club in Guatemala, in Villa Nueva, expected to open in spring 2027, subject to permits. Along with four previously announced clubs in the Dominican Republic, Jamaica and Costa Rica, the network would increase from 56 to 61 warehouse clubs.
What is PriceSmart’s Adjusted EBITDA and why is it important?
PriceSmart reported fiscal 2026 Q2 Adjusted EBITDA of $99.7 million, up from $87.0 million. Adjusted EBITDA adds back interest, taxes, depreciation, amortization and certain other items, helping investors evaluate the company’s cash-generating ability from core operations across periods.