Membership warehouse club operator PriceSmart beats Q3 revenue estimate

Overview

• PriceSmart fiscal Q3 revenue rose 7.1% to $1.32 bln, beating estimate, per LSEG data

• Net merchandise sales increased 8.0%, with constant currency growth of 9.5%

• Company evaluating Chile as a potential new market for expansion

Outlook

• Company evaluating Chile as a potential new market for expansion

• PriceSmart actively seeking sites for new warehouse clubs in Chile

Result Drivers

• NEW CLUB OPENING - Addition of a new warehouse club contributed to sales growth

• CONSTANT CURRENCY GROWTH - Net merchandise sales grew 9.5% in constant currency, despite negative currency impacts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the discount stores peer group is "buy"

• Wall Street's median 12-month price target for PriceSmart Inc is $100.00, about 2% below its July 9 closing price of $102.01

Press Release: ID:nPn4zFr4za