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PriceSmart Stock Eyes $220 as Chile Expansion Fuels GrowthPriceSmart NASDAQ: PSMT reported higher third-quarter sales and earnings for fiscal 2026, with management pointing to broad-based comparable sales growth, stronger membership trends and continued investment in new clubs, supply chain capabilities and technology.

On the company’s earnings call, Chief Executive Officer David Price said PriceSmart delivered the results “against the backdrop of continued global uncertainty, currency volatility, evolving trade policy, and broader macroeconomic pressures.” He said the company is encouraged by business trends heading into the final quarter of the fiscal year.

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Why PriceSmart’s Discount May Not Last Much LongerFor the quarter ended May 31, net merchandise sales and total revenue each reached nearly $1.5 billion. Net merchandise sales rose 12.5%, or 8.5% on a constant-currency basis. Comparable net merchandise sales increased 10.7%, or 6.9% in constant currency.

For the first nine months of fiscal 2026, net merchandise sales reached nearly $4.3 billion, while total revenue was nearly $4.4 billion. Net merchandise sales increased 11%, or 8.6% in constant currency, and comparable net merchandise sales rose 8.8%, or 6.4% in constant currency.

Sales Growth Spans Regions and Categories 3 ETFs That Could Benefit as Consumers Tighten Their BudgetsPrice said the company’s third-quarter sales growth reflected both higher ticket sizes and more transactions. The average sales ticket increased 5% from the prior-year period, while transactions rose 7.1%. The average price per item increased 6%, while average items per basket declined 1%.

By region, PriceSmart reported growth across its operating footprint:

Central America: Net merchandise sales increased 10.6%, or 7.7% in constant currency. Comparable net merchandise sales rose 7.9%, or 5.2% in constant currency. Caribbean: Net merchandise sales increased 6.8%, or 6.2% in constant currency. Comparable net merchandise sales rose 6.2%, or 5.6% in constant currency. Colombia: Net merchandise sales increased 35.3%, or 18.6% in constant currency. Comparable net merchandise sales rose 35.7%, or 18.9% in constant currency. Price said Colombia’s increase was driven in part by appreciation of the Colombian peso compared with the prior year, along with other operational and market-driven factors.

On merchandising, the foods category grew approximately 12.5% in the third quarter, while non-foods increased approximately 12.3%. Price said the company has benefited from reconfigured warehouse club layouts that increased visibility for soft-line merchandise. He also highlighted momentum in limited-time and seasonal offerings, including apparel, housewares, small appliances and sporting goods.

PriceSmart also built a broader assortment around the 2026 FIFA World Cup, including food, beverage, electronics and soccer-themed offerings, as well as digital campaigns in select markets.

Membership Income Rises as Platinum Penetration Expands Membership accounts increased 8.6% year over year to more than 2.1 million. Price said Colombia posted particularly strong account growth of 11.6%, and has also been one of the company’s leading markets for Platinum Membership sign-ups.

Membership income increased 17.6% from the prior-year quarter. Platinum accounts represented 21.3% of the total membership base as of May 31, up from 16.1% a year earlier. Price said Platinum upgrades have been a significant contributor to membership income growth.

Membership income as a percentage of revenue was 1.7% in the third quarter, consistent with the prior-year period. The 12-month renewal rate reached 90.5% as of May 31, which Price described as a new all-time high for the second consecutive quarter.

Chile Expansion and Club Pipeline Advance PriceSmart announced that it executed a lease during the quarter for its first warehouse club in Chile, located in Comuna Las Condes in Santiago within the Mallplaza Los Dominicos shopping center. The club is expected to open in spring 2027.

Price said the Chile location will be PriceSmart’s first warehouse club in a mall setting and will serve as a foundation for what the company believes could become a “meaningful multi-club market over time.” The company has also entered into agreements to acquire land for two additional potential warehouse club sites in Chile.

PriceSmart expects to spend approximately $100 million in capital expenditures on its first three Chile warehouse clubs and central offices over the next several fiscal years. Price said the company has begun building a local team in Chile, including a country general manager and local buying team, and currently has about 20 employees working from leased office space.

During the Q&A portion of the call, Price said Chile differs from Colombia in several ways, including market size, income levels and population concentration. He said Santiago accounts for about half of Chile’s population and is located roughly 90 minutes from a major port. He also said the company is applying lessons learned from Colombia, including the importance of building the right local team and offering a strong mix of local and imported goods.

PriceSmart also purchased land in the fourth quarter of fiscal 2026 for its 11th club in Costa Rica, in Santo Tomás de Santo Domingo in Heredia province, with an anticipated opening in spring 2027. Other previously announced clubs in the pipeline include Ciudad Quesada, Costa Rica; Montego Bay and South Camp Road in Kingston, Jamaica; and Villa Nueva, Guatemala. Once the six new clubs are open, PriceSmart said it will operate 63 warehouse clubs.

Margins Improve, Earnings Rise Chief Financial Officer Gualberto Hernandez said total gross margin for the quarter increased 20 basis points to 16% of net merchandise sales, primarily due to improved margins in non-foods. Total revenue margins improved 30 basis points to 17.7% of total revenue, reflecting higher gross margin and strength in membership renewals and Platinum growth.

Total SG&A expenses rose slightly to 13.3% of total revenue from 13.2% a year earlier, driven primarily by higher warehouse club and other operations costs, including expenses tied to the launch in Chile. Hernandez said Chile preopening expenses represented about a 10-basis-point impact to SG&A in the quarter.

Operating income increased 16.7% year over year to $65.6 million, representing 4.4% of revenue compared with 4.3% a year earlier. Net income increased 12.3% to $39.7 million, or $1.28 per diluted share, from $35.2 million, or $1.14 per diluted share, in the prior-year quarter.

Adjusted EBITDA for the quarter was $90.4 million, up 14.5% from $79 million a year earlier. For the first nine months of fiscal 2026, net income was $128.9 million, or $4.18 per diluted share, up from $116.3 million, or $3.80 per diluted share, in the comparable period. Adjusted EBITDA for the first nine months increased 13% to $277 million.

Hernandez said PriceSmart ended the quarter with cash, cash equivalents and restricted cash totaling $254.6 million, plus approximately $113.7 million in short-term investments. He noted that as of May 31, the company had TTD 44.1 million in cash equivalents and short- and long-term investments denominated in Trinidad local currency that could not be readily converted into U.S. dollars.

Technology, Supply Chain and Currency Issues Remain in Focus PriceSmart said digital channel sales reached $99.6 million in the third quarter, the company’s highest dollar volume to date. Digital sales increased 26.2% year over year and represented 6.9% of total net merchandise sales. Orders placed directly through the company’s website or app rose 20.3%, while average transaction value increased 4.4%.

As of May 31, 75.8% of PriceSmart members had created an online profile, and 27.1% had made a purchase through the company’s website or app.

The company also continued its technology and supply chain initiatives. Price said PriceSmart began operations at a new distribution center in Bogotá, Colombia, during the quarter, and plans to open distribution centers in Jamaica during fiscal 2026 and the Dominican Republic during fiscal 2027. PriceSmart also continues to roll out the RELEX forecasting and replenishment platform, with full implementation expected in the second quarter of fiscal 2027.

In response to an analyst question about Trinidad, Hernandez said the company sourced more U.S. dollars during the quarter, helping reduce trapped cash balances, but said there had been no material change in market conditions. He said the company continues to apply a premium in its costs to cover currency constraints and is evaluating ways to reduce its need for U.S. dollars in Trinidad or access them through compliant alternatives.

Looking ahead, Price said comparable net merchandise sales for the four weeks ended June 28 were up 11.2%, or 6.5% in constant currency, providing an early view into the company’s fiscal fourth quarter.

About PriceSmart NASDAQ: PSMTPriceSmart, Inc NASDAQ: PSMT is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart's value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.

The company's product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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PriceSmart NASDAQ: PSMT is accelerating growth and outpacing peers in revenue growth, suggesting further upside for its stock price. The risk is its valuation, which, at approximately 36x the current year forecast, is high.

The caveat for bears is that this valuation aligns with peers, pricing in quality and growth, and likely underestimates PriceSmart’s strength. The company is well-positioned as the leading (in some cases) membership club retailer in Latin America. Its warehouse empire spans 12 countries and one U.S. territory, with new markets opening regularly.

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PriceSmart Today

$188.93 -0.18 (-0.09%)

As of 01:32 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$101.30▼

$199.84Dividend Yield0.74%

P/E Ratio37.32

The critical detail in 2026, and the operational factor for share prices, is the expected six new clubs by next spring, a more than 10% increase, with at least one in a new market with great potential. The fiscal Q3 results included plans to open the first PriceSmart in Chile. Chile represents a more lucrative market, with a well-established retail industry lacking a membership club, and consumers with greater spending power.

Estimates suggest that as many as five PriceSmarts could be located in Chile, with longer-term growth possible. Country-specific catalysts include a lean toward more economically friendly policies, attracting foreign investment, and its position in mining and green energy. Chile's dominance in lithium and copper, and its emergence in green hydrogen, are fueling the economic growth and rising incomes that underpin the spending power PriceSmart depends on.

PriceSmart Delivers in Latest Quarter, Outperforms PeersPriceSmart had a solid fiscal Q3, with revenue growing 12.5% to $1.48 billion. The growth outpaced Costco NASDAQ: COST, accelerated from the prior year, and beat the analyst consensus by approximately 200 basis points (bps). Strength was seen across the network, with merchandise sales underpinning the strength. Comp sales, a sign of localized strength and organic growth, increased by 10.7% and are expected to remain strong in the upcoming quarters. Region-specific catalysts include rapidly improving industrialization, employment, and consumer health.

Margin new was another factor underpinning the stock price increase posted this year. The company is widening its margin with scale, driving a 14.4% increase in adjusted EBITDA despite foreign exchange and macroeconomic headwinds and cost pressures.

The company does not issue formal guidance, but it showed clear momentum in its results and an optimistic outlook, given its accelerating expansion plans. The likely outcome is that PriceSmart will continue to grow at a robust pace in the coming quarters, with growth accelerating in 2027 as new stores come online.

PriceSmart’s Weak Analyst Coverage Masks High Institutional SupportPriceSmart’s analyst coverage is weak, with only one tracked by MarketBeat, but there are mitigating factors.

The large, 80% institutional ownership, numerous large ownership blocks, lack of regular market-moving news (to drive trading volume), and low market cap are to blame. That said, institutions and long-term oriented funds hold the bulk of shares, while insiders control nearly all the rest. In this environment, the stock price can continue to rise, as institutions have been accumulating, and cash flows give them no reason to exit.

PriceSmart’s cash flow enables it to invest in growth, sustain a healthy balance sheet, and return capital to investors. The capital return is dividend distribution, which, although low in yield, is strong in reliability and growth. The yield is below average, about 0.7% annualized as of mid-July, but coverage is ample, the payout ratio runs below 30%, and annual increases are becoming the norm.

PriceSmart Set Up to Advance in Q3 2026PriceSmart’s stock price experienced some volatility ahead of the release but stabilized in its wake. The result is that support was confirmed at the $190 level, and a bullish pattern is emerging. The past few weeks' action amounts to consolidation within an uptrend and is potentially a Bullish Flag. If confirmed by a breakout to the upside, the upside targets correspond to the magnitude of the preceding rally, or about $30. In this scenario, PSMT's share price can rise to $220 or higher by year’s end.

PriceSmart’s biggest risks lie in its business model, which relies on cross-border dealings. Risks include currency devaluation, as it buys in U.S. dollars and sells in local currency, and currency repatriation. Some markets, specifically Trinidad & Tobago, have faced severe currency shortages that have prevented the repatriation of profits. Geopolitical instability, supply, and import barriers also pose threats. The company mitigates these threats with dynamic sourcing, geographic diversification, regional logistics hubs, and private labels.

What the market gets wrong about this stock is that it is neither a traditional brick-and-mortar retailer nor a simple emerging-market play, but rather a highly specialized membership club with durable cash flows and a moat. The membership model, specifically the fees, underpins its profitability, making it more of a subscription service with a 90% renewal rate than a retailer. Additionally, the threat posed by eCommerce giants is mitigated by PriceSmart's footprint, which enables more cost-effective delivery of bulky items at scale to remote locations.

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NET MERCHANDISE SALES GREW 12.5%
COMPARABLE NET MERCHANDISE SALES INCREASED 10.7%
$1.28 EARNINGS PER DILUTED SHARE

, /PRNewswire/ -- 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 [email protected].

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 %

SOURCE PriceSmart, Inc.

PriceSmart remains a soft 'buy' after significant outperformance, supported by consistent growth and undervaluation versus peers. PSMT's Q1 2026 revenue rose 9.9% to $1.38B, driven by strong Colombia comps (+27.9%) and membership expansion. Membership income reached $89M, with platinum penetration increasing to 19.3%, enhancing recurring revenue and customer engagement.

Posted by Defense World Staff on Apr 6th, 2026

SG Americas Securities LLC reduced its stake in shares of PriceSmart, Inc. (NASDAQ:PSMT – Free Report) by 39.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 14,908 shares of the company’s stock after selling 9,887 shares during the quarter. SG Americas Securities LLC’s holdings in PriceSmart were worth $1,829,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of PSMT. Geneos Wealth Management Inc. lifted its holdings in shares of PriceSmart by 560.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the company’s stock valued at $26,000 after buying an additional 252 shares during the last quarter. First Horizon Corp bought a new stake in shares of PriceSmart during the 3rd quarter worth $30,000. Steward Partners Investment Advisory LLC boosted its holdings in PriceSmart by 52.5% during the second quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company’s stock valued at $38,000 after acquiring an additional 125 shares during the period. Mather Group LLC. acquired a new stake in PriceSmart in the 3rd quarter valued at approximately $39,000. Finally, AlphaQuest LLC grew its stake in shares of PriceSmart by 127.5% in the third quarter. AlphaQuest LLC now owns 414 shares of the company’s stock worth $50,000 after acquiring an additional 232 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

Insider Activity In other PriceSmart news, Director Leon C. Janks sold 3,000 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $137.29, for a total value of $411,870.00. Following the completion of the sale, the director owned 30,734 shares of the company’s stock, valued at approximately $4,219,470.86. This represents a 8.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paul Kovaleski sold 4,255 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $136.86, for a total transaction of $582,339.30. Following the completion of the sale, the executive vice president owned 38,854 shares in the company, valued at approximately $5,317,558.44. This trade represents a 9.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 16,671 shares of company stock valued at $2,283,051. Insiders own 17.00% of the company’s stock.

PriceSmart Stock Performance Shares of NASDAQ:PSMT opened at $152.48 on Monday. The company has a current ratio of 1.33, a quick ratio of 0.55 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $4.70 billion, a P/E ratio of 31.12 and a beta of 0.74. The business has a 50-day moving average price of $149.66 and a two-hundred day moving average price of $133.15. PriceSmart, Inc. has a 1-year low of $81.25 and a 1-year high of $158.01.

PriceSmart (NASDAQ:PSMT – Get Free Report) last announced its quarterly earnings data on Wednesday, January 7th. The company reported $1.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.01. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same period last year, the firm earned $1.21 earnings per share. The business’s revenue for the quarter was up 9.9% on a year-over-year basis. Equities analysts predict that PriceSmart, Inc. will post 5.28 earnings per share for the current year.

PriceSmart Announces Dividend The business also recently declared a dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be paid a $0.70 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a dividend yield of 89.0%. PriceSmart’s dividend payout ratio is 28.57%.

Analyst Upgrades and Downgrades Several brokerages recently issued reports on PSMT. Weiss Ratings upgraded PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, March 10th. Wall Street Zen cut shares of PriceSmart from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. One research analyst has rated the stock with a Strong Buy rating, According to MarketBeat, the stock currently has an average rating of “Strong Buy”.

Read Our Latest Report on PriceSmart

PriceSmart Profile (Free Report)

PriceSmart, Inc (NASDAQ: PSMT) is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart’s value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.

The company’s product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.

Featured Articles Five stocks we like better than PriceSmart Want to see what other hedge funds are holding PSMT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PriceSmart, Inc. (NASDAQ:PSMT – Free Report).

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PriceSmart, Inc. (PSMT) Q2 2026 Earnings Call Transcript

PriceSmart, Inc. reported a good growth story continuation in Q2 as the existing club footprint's financial momentum stood strong. Membership income rose by 16.9%, providing an increasingly important high-margin revenue stream as platinum penetration continues to increase. PSMT continues to invest in new locations at a good pace and with good capital returns.

Black Creek Investment Management Inc. disclosed a sale of 473,785 shares of PriceSmart (PSMT +0.43%) in a filing dated May 13, 2026, an estimated $69.20 million transaction based on average quarterly pricing.

What happenedAccording to an SEC filing dated May 13, 2026, Black Creek Investment Management Inc. sold 473,785 shares of PriceSmart. The estimated transaction value was $69.20 million, calculated using the average unadjusted closing price for the first quarter of 2026. At quarter close, the fund’s remaining PriceSmart stake was 1,164,834 shares, valued at $175.31 million, with the overall position value changing by $25.70 million during the period.

What else to knowBlack Creek’s reduction brings PriceSmart to 9.41% of reportable AUM as of March 31, 2026Top holdings after the filing:NYSE:ELAN: $251.12 million (13.5% of AUM)NYSE:BAH: $207.43 million (11.1% of AUM)NYSE:FCN: $194.28 million (10.4% of AUM)NYSE:EXP: $147.31 million (7.9% of AUM)NASDAQ:PYPL: $143.55 million (7.7% of AUM)As of May 18, 2026, PriceSmart shares were priced at $162.90, up 55.8% over the past year, outperforming the S&P 500 by 31.3 percentage pointsCompany OverviewMetricValuePrice (as of market close 2026-05-18)$162.90Market Capitalization$5.03 billionRevenue (TTM)$5.53 billionNet Income (TTM)$152.92 millionCompany SnapshotOffers brand name and private label consumer products, fresh produce, prepared foods, and ancillary services such as optical and tire centers through warehouse clubs and e-commerce platforms.Operates a membership-based warehouse club model, generating revenue from product sales and annual membership fees, supplemented by online ordering and delivery services.Targets individual consumers and small businesses in Central America, the Caribbean (including the U.S. Virgin Islands), and Colombia seeking value-oriented bulk purchasing and essential goods.56 warehouse clubs across 12 countries and one U.S. territory as of February 28, 2026, with five more under development that would bring the total to 61, leveraging scale and operational efficiency to deliver value to its members. The company’s strategy centers on a hybrid retail and membership model, supported by both physical locations and a growing e-commerce presence. PriceSmart’s competitive edge lies in its ability to offer a broad assortment of essential goods and services at attractive price points in underserved international markets.

What this transaction means for investorsBlack Creek trimmed its PriceSmart position during Q1 2026, but this is a reduction after a strong run, not a change of direction. The fund still holds a significant stake, and nothing about the filing suggests the underlying thesis has shifted. PriceSmart operates membership warehouse clubs across Central America, the Caribbean, and Colombia — markets where it faces nothing like the competitive pressure a Costco or Sam's Club would encounter in the U.S. Members pay annual fees for access to bulk goods and services, which creates recurring revenue and keeps customers sticky. That model, planted in underserved international markets with limited direct competition, is the core of the investment case. The business has been executing: comparable sales are growing, membership is expanding, and the company is actively opening new clubs while scoping Chile as its next frontier. A trim after a strong run is consistent with routine portfolio management, not a reassessment of those fundamentals. For anyone evaluating PriceSmart, the more useful question is whether the growth story can justify where the stock is trading after its run. Black Creek's remaining conviction suggests they think there's still room — just less of it than before.

Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booz Allen Hamilton, FTI Consulting, and PayPal. The Motley Fool recommends Eagle Materials and recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.

Hyatt Hotels (H), PriceSmart (PSMT) and Voya Financial (VOYA) reached new highs Friday, as the stock market endured another round of selling. All three stocks are in Investor's Business Daily's New Highs list.

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Hyatt Hotels Extends Breakout Gains Hyatt Hotels owns, operates, manages and franchises hotels and resorts.

Shares rallied around 7% this past week, hitting new highs and moving further above a 175.54 cup-with-handle buy point, according to IBD MarketSurge. The 5% buy zone ran up to 184.31, so shares are extended. Investors must now wait for a new chart pattern to emerge.

Hyatt stock has a solid 91 IBD Composite Rating, according to IBD Stock Checkup. Despite solid gains from its breakout, the stock has a 78 Relative Strength Rating, lower than desirable.

PriceSmart, Voya Financial Hit New Highs San Diego-headquartered PriceSmart is the largest operator of membership-based warehouse clubs — like Costco Wholesale (COST) and Walmart's (WMT) Sam's Club — in Central America.

In the latest quarter, PriceSmart earnings climbed 12% to $1.32 per share. Revenue climbed 10% to nearly $1.49 billion.

PriceSmart stock is trading above its 5% buy zone from a 165.46 flat-base entry. The buying area topped out at 173.73.

The stock's relative strength line has climbed to its highest level since early April and is approaching new highs. That's a sign of outperformance.

Meanwhile, Voya Financial is breaking out past an 84 buy point from a tight pattern, with a solid gain Friday in the face of weak stock market action. The buy area goes up to 88.20. The stock traded tightly for several weeks, which is constructive action.

Voya is a financial services company, providing workplace retirement plans, employee benefits and institutional asset management. It has a 90 Composite Rating.

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