Double-digit growth as PriceSmart (NASDAQ: PSMT) posts strong Q3 2026 results
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
PriceSmart reported strong fiscal Q3 2026 growth with expansion plans into new markets. Total revenues for the quarter ended May 31, 2026 rose 12.5% to $1.48 billion, driven by a 12.5% increase in net merchandise sales to $1.45 billion. Comparable net merchandise sales for clubs open more than 13½ months grew 10.7%, or 6.9% on a constant-currency basis, with foreign exchange adding a 3.8% tailwind.
Operating income increased to $65.6 million from $56.2 million, while net income rose 12.9% to $39.7 million, or $1.28 per diluted share, compared with $1.14 a year earlier. Adjusted EBITDA reached $90.4 million versus $79.0 million in the prior-year quarter.
For the first nine months of fiscal 2026, total revenues were $4.36 billion, up 10.7%, and net income was $128.9 million, or $4.18 per diluted share. The company operated 57 warehouse clubs as of May 31, 2026 and plans its first club in Chile and an eleventh club in Costa Rica, contributing to a planned total of 63 clubs once six announced new locations are open.
Positive
- Total revenues grew 12.5% year-over-year in fiscal Q3 2026 to $1.48 billion, with comparable net merchandise sales up 10.7%, indicating strong underlying demand.
- Profitability improved, as net income increased 12.9% to $39.7 million and diluted EPS rose from $1.14 to $1.28, while Adjusted EBITDA reached $90.4 million versus $79.0 million a year earlier.
- Growth investments include a planned first warehouse club in Chile and an eleventh club in Costa Rica, contributing to a planned total of 63 clubs once six new locations are open.
Negative
- None.
Insights
PriceSmart delivered double-digit growth and is investing in new club expansion.
PriceSmart posted fiscal Q3 2026 revenue of $1.48 billion, up 12.5%, with net merchandise sales also up 12.5%. Comparable net merchandise sales rose 10.7%, indicating solid underlying demand across its 54 mature clubs, with foreign exchange providing part of the lift.
Profitability improved as operating income increased to $65.6 million and net income to $39.7 million, or $1.28 diluted EPS. Year-to-date, Adjusted EBITDA reached $277.0 million versus $245.1 million, showing stronger earnings before financing and non-core items.
Strategically, the company is entering Chile with a first club in Comuna Las Condes and adding an eleventh club in Costa Rica, both anticipated in spring 2027. Once six announced clubs open, the network will reach 63 locations, extending its Latin American and Caribbean footprint.
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
Q3 2026 total revenues: $1.48 billion
Q3 2026 net merchandise sales: $1,450.7 million
Q3 2026 net income: $39.7 million
+5 more
8 metrics
Q3 2026 total revenues
$1.48 billion
Quarter ended May 31, 2026; up 12.5% year-over-year
Q3 2026 net merchandise sales
$1,450.7 million
Quarter ended May 31, 2026; up 12.5% year-over-year
Q3 2026 net income
$39.7 million
Quarter ended May 31, 2026; up 12.9% year-over-year
Q3 2026 diluted EPS
$1.28 per share
Quarter ended May 31, 2026; prior-year quarter was $1.14
Q3 2026 comparable net merchandise sales growth
10.7%
Thirteen weeks ended May 31, 2026; constant-currency growth 6.9%
Q3 2026 Adjusted EBITDA
$90.4 million
Quarter ended May 31, 2026; prior-year quarter $79.0 million
Year-to-date 2026 total revenues
$4.36 billion
Nine months ended May 31, 2026; up 10.7% year-over-year
Warehouse clubs in operation
57 clubs
As of May 31, 2026; planned to reach 63 after six new openings
Key Terms
Adjusted EBITDA, net merchandise sales - constant currency, comparable net merchandise sales - constant currency, operating income, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the third quarter of fiscal year 2026 was $90.4 million compared to $79.0 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.
net merchandise sales - constant currency financial
"Net merchandise sales - constant currency increased 8.5% over the comparable prior-year period."
Net merchandise sales - constant currency measures the total value of goods sold (after returns and discounts) translated into a single, fixed set of exchange rates so that changes in foreign currency values do not affect the number. It helps investors see whether underlying sales volume and pricing changed, like comparing last year and this year using the same yardstick rather than letting currency swings make one period look bigger or smaller.
comparable net merchandise sales - constant currency financial
"Comparable net merchandise sales - constant currency for the 13 weeks ended May 31, 2026 increased 6.9%."
A sales measure showing how merchandise sales have changed at the same set of stores and online channels over time, calculated after returns and discounts and excluding new or closed locations. The “constant currency” part removes the effect of exchange rate moves so the number reflects underlying demand and operational performance rather than foreign-exchange swings, making comparisons between periods more like an apples‑to‑apples test.
operating income financial
"The Company recorded operating income during the fiscal third quarter of $65.6 million compared to operating income of $56.2 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.
forward-looking statements regulatory
"This press release may contain forward-looking statements concerning PriceSmart, Inc.'s anticipated future revenues and earnings"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Total revenues: $1.48 billion
Q3 2026
Total revenues
$1.48 billion
+12.5% year-over-year
Net merchandise sales
$1,450.7 million
+12.5% year-over-year
Net income
$39.7 million
+12.9% year-over-year
Diluted EPS
$1.28
vs $1.14 in Q3 2025
Comparable net merchandise sales
10.7% growth
6.9% growth on a constant-currency basis
Adjusted EBITDA
$90.4 million
vs $79.0 million in Q3 2025
FAQ
How did PriceSmart (PSMT) perform in its fiscal Q3 2026?
PriceSmart reported strong fiscal Q3 2026 results with total revenues of $1.48 billion, up 12.5% year-over-year. Net income increased to $39.7 million, or $1.28 per diluted share, reflecting both higher sales and improved operating income.
What were PriceSmart (PSMT) comparable sales trends in Q3 2026?
Comparable net merchandise sales for PriceSmart’s 54 mature clubs rose 10.7% for the 13 weeks ended May 31, 2026. On a constant-currency basis, comparable sales increased 6.9%, with foreign currency exchange contributing a positive 3.8% impact versus the prior-year period.
How did foreign currency affect PriceSmart (PSMT) Q3 2026 results?
Foreign currency movements boosted PriceSmart’s Q3 2026 net merchandise sales by $50.6 million, a 4.0% positive impact. For comparable net merchandise sales, foreign exchange added 3.8% growth, highlighting that part of the double-digit sales increase came from currency tailwinds.
What are PriceSmart’s (PSMT) expansion plans in Chile and Costa Rica?
PriceSmart plans its first warehouse club in Comuna Las Condes, Santiago, Chile, inside Mallplaza Los Dominicos, and an eleventh club in Santo Tomas de Santo Domingo, Costa Rica. Both locations are anticipated to open in spring 2027, supporting a future network of 63 clubs.
What were PriceSmart (PSMT) year-to-date fiscal 2026 financial results?
For the nine months ended May 31, 2026, PriceSmart’s total revenues reached $4.36 billion, up 10.7% year-over-year. Net income was $128.9 million, or $4.18 per diluted share, and Adjusted EBITDA increased to $277.0 million from $245.1 million.
How many warehouse clubs does PriceSmart (PSMT) operate and plan to operate?
As of May 31, 2026, PriceSmart operated 57 warehouse clubs across 12 countries and one U.S. territory. With six announced new clubs, including in Chile, Costa Rica, Jamaica, Guatemala, and Costa Rica again, the company expects to operate 63 clubs once they open.
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): July 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 July 8, 2026, PriceSmart, Inc. issued a press release regarding the results of operations for its third quarter ended May 31, 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 July 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: July 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 July 8, 2026. | ||||||||||
| 104 | The cover page from this Current report on Form 8-K, formatted in Inline XBRL. | ||||||||||
PRICESMART ANNOUNCES FISCAL 2026 THIRD QUARTER OPERATING RESULTS; PLANS FOR FIRST CLUB IN CHILE; ELEVENTH CLUB IN COSTA RICA
NET MERCHANDISE SALES GREW 12.5%
COMPARABLE NET MERCHANDISE SALES INCREASED 10.7%
$1.28 EARNINGS PER DILUTED SHARE
San Diego, CA (July 8, 2026) - PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT), operator of 57 warehouse clubs in 12 countries and one U.S. territory, today announced results for the fiscal third quarter of 2026, which ended on May 31, 2026.
Third Quarter Financial Results
Total revenues for the third quarter of fiscal year 2026 increased 12.5% to $1.48 billion compared to $1.32 billion in the comparable period of the prior year. For the third quarter of fiscal year 2026, net merchandise sales increased 12.5% to $1.45 billion from $1.29 billion in the third quarter of fiscal year 2025. Net merchandise sales - constant currency increased 8.5% over the comparable prior-year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $50.6 million, or 4.0%, versus the same period in the prior year.
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 10.7% for the 13-week period ended May 31, 2026 compared to the comparable 13-week period of the prior year. Comparable net merchandise sales - constant currency for the 13 weeks ended May 31, 2026 increased 6.9%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 3.8% versus the same period in the prior year.
The Company recorded operating income during the fiscal third quarter of $65.6 million compared to operating income of $56.2 million in the prior-year period. Net income increased 12.9% to $39.7 million, or $1.28 per diluted share, in the third quarter of fiscal year 2026 compared to $35.2 million, or $1.14 per diluted share, in the third quarter of fiscal year 2025.
Adjusted EBITDA for the third quarter of fiscal year 2026 was $90.4 million compared to $79.0 million in the same period last year.
Year-to-Date Financial Results
Total revenues for the nine months ended May 31, 2026 increased 10.7% to $4.36 billion compared to $3.94 billion in the comparable period of the prior year. For the first nine months of fiscal year 2026, net merchandise sales increased 11.0% to $4.27 billion from $3.85 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 $92.1 million, or 2.4%, 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 8.8% for the 39-week period ended May 31, 2026 compared to the comparable 39-week period of the prior year. Comparable net merchandise sales - constant currency for the 39 weeks ended May 31, 2026 increased 6.4%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 2.4% versus the same period in the prior year.
The Company recorded operating income during the first nine months of fiscal year 2026 of $204.0 million compared to operating income of $179.8 million in the prior-year period. Net income increased 10.8% to $128.9 million, or $4.18 per diluted share, in the first nine months of fiscal year 2026 compared to $116.3 million, or $3.80 per diluted share, in the first nine months of fiscal year 2025.
Adjusted EBITDA for the first nine months of fiscal year 2026 was $277.0 million compared to $245.1 million in the same period last year.
New Market Growth - Chile
The Company has executed a lease and plans to open its first warehouse club in Chile, located in Comuna Las Condes, Santiago. The club will be located within Mallplaza Los Dominicos shopping center and is anticipated to open in spring 2027.
“We are excited to announce our planned entry into Chile with our first location in the Las Condes corridor, which will also be our first warehouse club located within a mall setting. This site aligns well with our membership model and long-term growth strategy. It offers strong demographics, excellent accessibility, and a retail environment that resonates with the quality and value focused Members we will serve in Chile. We anticipate a spring 2027 opening. More importantly, this club establishes the foundation for what we believe can become a meaningful multi-club market over time,” said David Price, Chief Executive Officer of PriceSmart.
Existing Market Expansion
The Company has purchased land and plans to open its eleventh warehouse club in Costa Rica, located in Santo Tomas de Santo Domingo (Heredia), approximately four miles east from the nearest club in Heredia. The club will be built on a six-acre property and is anticipated to open in the spring of 2027.
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 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 57 warehouse clubs in 12 countries and one U.S. territory (ten in Colombia; nine in Costa Rica; seven each in Panama and Guatemala; six 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 warehouse club in each of Ciudad Quesada and Santo Tomas de Santo Domingo (Heredia), Costa Rica in August 2026 and in the spring of 2027, respectively, one new warehouse club in each of Montego Bay and South Camp Road (Kingston), Jamaica in the fall of 2026 and winter of 2026-27, respectively, one warehouse club in Villa Nueva, Guatemala in the winter of 2027, and one warehouse club in Comuna Las Condes, Santiago, Chile in the spring of 2027. Once these six new clubs are open, the Company will operate 63 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, 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.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | ||||||||||||||||||||
| 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 income (loss) of unconsolidated affiliates | 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.
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
| May 31, 2026 (Unaudited) | August 31, 2025 | ||||||||||
| 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 $0 and $2 as of May 31, 2026 and August 31, 2025, respectively | 19,837 | 17,400 | |||||||||
| Merchandise inventories | 623,052 | 560,730 | |||||||||
Prepaid expenses and other current assets (includes $860 and $0 as of May 31, 2026 and August 31, 2025, respectively, for the fair value of derivative instruments) | 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 $469 and $701 as of May 31, 2026 and August 31, 2025, respectively, for the fair value of derivative instruments) | 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 $7,227 and $551 as of May 31, 2026 and August 31, 2025, respectively, for the fair value of derivative instruments) | 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 $2,613 and $6,196 for the fair value of derivative instruments and $14,745 and $13,628 for post-employment plans as of May 31, 2026 and August 31, 2025, respectively) | 39,706 | 19,824 | |||||||||
| Total Liabilities | 1,126,795 | 1,021,785 | |||||||||
| Stockholders' Equity: | |||||||||||
Common stock $0.0001 par value, 45,000,000 shares authorized; 32,817,994 and 32,688,047 shares issued and 30,860,524 and 30,745,833 shares outstanding (net of treasury shares) as of May 31, 2026 and August 31, 2025, respectively | 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 as of August 31, 2025 | (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 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 | Nine Months Ended | ||||||||||||||||||||||
| (Amounts in thousands) | May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |||||||||||||||||||
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 U.S. dollars) for the three and nine months ended May 31, 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 May 31, 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:
| May 31, 2026 | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (Amounts in thousands, except % growth) | Net merchandise sales | % Growth | Net merchandise sales | % 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 Ended | Thirty-Nine Weeks Ended | ||||||||||
| % 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 | % | |||||||