PriceSmart Q4 Revenue Rises 13.9% as Membership Income Grows

PriceSmart, Inc. reported double-digit revenue and earnings growth for the fourth quarter of fiscal 2026, supported by higher merchandise sales and membership income. Foreign-exchange movements contributed materially to reported sales growth, while constant-currency results showed a more moderate underlying increase.

For the three months ended August 31, total revenue rose 13.9% year over year to $1.52 billion. Net merchandise sales increased 13.8% to $1.48 billion, including a 6.0-percentage-point benefit from foreign currency exchange. On a non-GAAP constant-currency basis, net merchandise sales grew 7.8%.

Operating income increased 8.1% to $57.0 million, while net income rose 19.3% to $37.6 million. Diluted earnings per share advanced 18.6% to $1.21. Adjusted EBITDA, a non-GAAP measure, was $83.5 million, compared with $75.5 million a year earlier.

Membership and digital sales support growth

Fourth-quarter membership income increased 20.3% to $27.2 million. For the full fiscal year, PriceSmart served 2.19 million membership accounts, up from 2.01 million in fiscal 2025, while its trailing-12-month renewal rate reached 90.4%, compared with 88.8% a year earlier.

Platinum membership penetration rose to 23.4% at August 31 from 17.9% a year earlier, with Platinum members increasing to 512,326 from 360,605. The company’s Member’s Selection private-label range accounted for 26.9% of full-year net merchandise sales.

Omnichannel sales represented 7.0% of fourth-quarter net merchandise sales and 6.7% for the full year. PriceSmart said members who shop through both its e-commerce platforms and physical clubs spend more than in-club-only members. Its digital offering includes home delivery, club pickup, online membership services and a mobile app.

Full-year revenue approaches $5.9 billion

For fiscal 2026, total revenue increased 11.5% to $5.88 billion, and net merchandise sales rose 11.7% to $5.75 billion. Constant-currency net merchandise sales grew 8.4%, with foreign exchange adding 3.3 percentage points to reported growth. Comparable net merchandise sales increased 9.6%, or 6.4% in constant currency.

Full-year operating income rose 12.3% to $261.0 million, remaining at 4.4% of revenue. Net income increased 12.6% to $166.6 million, and diluted earnings per share rose 12.0% to $5.40. Adjusted EBITDA was $360.5 million, up from $320.7 million in fiscal 2025.

The company’s revenue margin increased to 17.7% from 17.4% in the prior year. Membership income climbed 17.8% to $100.8 million, with the average membership fee rising to $45.76 from $42.27.

Cash flow from operations totaled $307.7 million, compared with $261.3 million in fiscal 2025. Capital expenditures increased to $216.7 million from $154.1 million, including $143.8 million of growth spending and $67.5 million of maintenance spending. PriceSmart ended the fiscal year with $264.7 million in cash, cash equivalents and restricted cash, down from $285.3 million a year earlier.

Club and distribution expansion continues

PriceSmart had 58 clubs at the August 31 fiscal year-end and opened its 59th location in Montego Bay, Jamaica, in October. The company expects to open another Kingston club in December 2026, followed by locations in Villa Nueva, Guatemala, in late winter 2027 and in Heredia, Costa Rica, in spring 2027.

Its first Chile club, at Mallplaza Los Dominicos in Santiago, is also anticipated to open in spring 2027. PriceSmart has entered into agreements to acquire land for two additional potential Chile locations.

The company is also developing in-country distribution centers in Jamaica and the Dominican Republic and expects them to open during fiscal 2027. A third-party distribution center in Chile is planned for the same fiscal year. Management’s broader growth plan includes adding and remodeling clubs, expanding distribution capacity, increasing membership value and investing in digital and technological capabilities.

PriceSmart expects to add seven pharmacy locations and four optical locations during fiscal 2027. The company had pharmacy services in 26 clubs and optical services in 56 clubs at the time of the presentation. It discontinued audiology services during the fourth quarter.

The company identified currency volatility and local-currency liquidity constraints, economic and political conditions in its international markets, competition, shifts in consumer and small-business spending, supply-chain disruption and higher supplier costs among its principal uncertainties. Other risks include the execution of expansion and digital initiatives, reliance on third-party service providers, cybersecurity threats and the costs of integrating e-commerce with its warehouse-club operations.