PriceSmart Gains on Strong Revenue Growth in Fiscal First Quarter
Warehouse club operator reports a 9.9% jump in quarterly revenue to $1.38 billion, driven by robust sales in Latin America and the Caribbean.
PriceSmart, Inc. (NASDAQ: PSMT) saw its shares trade higher on Wednesday after the company reported strong financial results for its fiscal first quarter of 2026, showcasing robust revenue growth and continued operational strength in its core markets across Latin America and the Caribbean.
The San Diego-based warehouse club operator announced that for the quarter ending November 30, 2025, total revenues climbed 9.9% year-over-year to $1.38 billion, surpassing consensus analyst estimates of $1.35 billion. The performance was largely driven by a significant 10.6% increase in net merchandise sales, which reached $1.35 billion. This top-line strength underscores healthy consumer demand and effective merchandising in the 56 clubs it operates.
A key metric for retailers, comparable net merchandise sales for clubs open more than 13.5 months, increased by a healthy 8.0% during the quarter. According to the company's earnings report, currency fluctuations provided a tailwind, positively impacting net merchandise sales by approximately 1.1%.
PriceSmart reported a net income of $40.2 million, a 7.3% increase from the $37.4 million recorded in the same period last year. This resulted in a diluted earnings per share (EPS) of $1.29, up from $1.21 a year prior. While showing profit growth, the EPS figure came in slightly below the FactSet analyst consensus of $1.35. Operating income for the quarter grew 7.9% to $62.9 million.
Shares of PriceSmart were trading at $127.62, continuing a period of strong performance that has seen the stock approach its 52-week high of $131.46. With a market capitalization of approximately $3.93 billion, investors appear to be rewarding the company's consistent growth trajectory in emerging markets, a niche where it faces less direct competition than in the U.S. market.
The company's business model, which offers a curated selection of goods in a membership-based format, continues to prove resilient. The company is also pursuing further expansion, reiterating plans to open its tenth warehouse club in Costa Rica in the fall of 2026, signaling confidence in its regional growth strategy.
Wall Street remains broadly positive on the company’s outlook. Based on recent analyst ratings, PriceSmart holds a consensus "Moderate Buy" rating. While the average 12-month price target stands at approximately $120, forecasts from some analysts go as high as $135, as noted by data from TipRanks. The strong operational results and sustained sales momentum could prompt analysts to revise their estimates upward in the coming weeks.
PriceSmart’s ability to navigate the economic landscapes of 12 countries and one U.S. territory, combined with its steady expansion and strong comparable sales growth, positions it as a unique player in the global retail sector. The company will host a conference call to discuss the results further, where investors will be listening for management’s commentary on membership trends and the outlook for the remainder of the fiscal year.