The following is a summary of the PriceSmart, Inc. (PSMT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• PriceSmart reported Q3 FY2024 total revenue over $1.2 billion with net merchandise sales of nearly $1.2 billion, an increase of 11.6% year-over-year.

• Gross margin for Q3 FY2024 was 15.6%, a 30 basis point increase from last year, primarily due to general margin improvement across most sales categories.

• Operating income for Q3 FY2024 increased 15.9% to $49.9 million from the same period last year.

• Net income for the quarter was $32.5 million, or $1.08 per diluted share, up from $29.6 million, or $0.94 per diluted share, in Q3 FY2023.

Business Progress:

• PriceSmart opened new warehouse clubs in Guatemala and El Salvador during the fiscal year and started using third-party distribution centers in four markets to improve distribution.

• Continued expansion of health services with plans to open more pharmacy and audiology centers.

• Launched new e-commerce platform and increased digital channel sales by 27% year-over-year.

Opportunities:

• Significant investments in real estate with plans to open a new club in Costa Rica and remodel high-volume clubs, suggesting a clear strategy for physical and geographic expansion.

• Enhancement of membership value through successful campaigns and raising membership fees, indicating a focus on increasing revenue streams from membership dynamics.

Risks:

• The change in inventory mix towards more non-food items with longer lead times could potentially impact liquidity and cash flow if not managed properly.

More details: Pricesmart IR

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