NASDAQ$PSMT

Pricesmart Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Pricesmart's financial performance was impacted by global supply chain disruptions and shifts in consumer demands, resulting in increased net merchandise sales and comparable net merchandise sales, but also margin pressure due to higher markdowns.

PriceSmart's Q3 2022 results showed a 15.1% increase in total revenues to $1.03 billion. Net merchandise sales grew by 16.5% to $999.0 million, but operating income decreased to $33.8 million from $36.0 million in the prior year. Net income attributable to PriceSmart was $19.3 million, or $0.62 per diluted share, compared to $22.5 million, or $0.73 per diluted share, in the same quarter last year.

  • Net merchandise sales increased by 16.5% to $999.0 million, despite a 2.3% negative impact from foreign currency exchange rate fluctuations.
  • Comparable net merchandise sales grew by 12.8% for the 47 warehouse clubs open for over 13.5 calendar months, with a 2.2% negative impact from currency fluctuations.
  • Operating income was $33.8 million, down from $36.0 million in the prior year period.
  • Net income attributable to PriceSmart was $19.3 million, or $0.62 per diluted share, compared to $22.5 million, or $0.73 per diluted share, in the prior year.

Headline financials

Total Revenue

$1.03B

Previous: $895M+15.1%
EPS (adj)

$0.62

Previous: $0.73-15.1%
Capital Expenditures

-$98.6M

Previous: -$73.4M-34.4%
Free Cash Flow

-$79.3M

Previous: -$50.8M-56.0%
Net Income

$19.3M

Previous: $22.5M-14.5%
Operating Income

$33.8M

Previous: $36M-6.3%
Gross Profit

$1.03B

Previous: $895M+15.1%
Cash & Equivalents

$208M

Previous: $191M+8.8%
Total Assets

$1.79B

Previous: $1.63B+9.8%
Stock-Based Comp

$4M

Previous: $4.93M-18.8%

Revenue & EPS history

Pricesmart · Revenue · Quarterly

$1.03B

Q3 2022+15.1%vs Q3 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Pricesmart · $1.03B total across 4 segments · Q3 2022

  • Net Merch. Sales
    $999M+16.5%
  • Membership Income
    $15.4M
  • Export Sales
    $13.4M
  • Other Revenue
    $2.96M

Forward guidance

PriceSmart anticipates margin pressure in the fourth quarter, but believes it will be less than in the third quarter and expects to return to historical margin structures soon.

Tailwinds

  • Focus on medium and long-term growth initiatives.
  • Expansion of global real estate footprint.
  • Increasing the value of membership.
  • Driving incremental sales through PriceSmart.com.
  • Creation of additional technology capabilities.

Headwinds

  • Global supply chain disruption.
  • Asia port closures due to COVID.
  • Container shortages.
  • Higher freight and fuel costs.
  • Inflation and sharp changes in consumer demands.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.9%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+15.4%

Q2 2020

Best reaction

-15.5%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.0%+0.0%+1.0%
Q1 2026+4.5%+7.2%+22.9%
Q4 2025-4.8%-3.0%+0.2%
Q3 2025+0.7%+0.8%+1.3%
Q2 2025+7.0%+6.8%+21.8%
Q1 2025-3.2%-8.0%-0.6%
Q4 2024-8.0%-5.0%-0.6%
Q3 2024+2.6%+7.8%+5.7%
Q2 2024-3.6%-4.9%+2.2%
Q1 2024+4.5%+5.2%+6.9%
Q4 2023-13.4%-7.4%-6.3%
Q3 2023+2.3%+0.8%+2.3%
Q2 2023+12.6%+8.8%+2.1%
Q1 2023+8.4%+11.6%+17.6%
Q4 2022+6.6%+8.6%+10.7%
Q3 2022-9.9%-9.0%-11.8%
Q2 2022+10.9%+4.0%-1.4%
Q1 2022+2.1%+2.6%-6.0%
Q4 2021-5.3%-9.2%-0.6%
Q3 2021+4.8%+3.6%-2.1%
Q2 2021-6.4%-6.5%-7.2%
Q1 2021+1.9%+1.5%+2.0%
Q4 2020-4.6%-4.9%+13.1%
Q3 2020+6.4%+8.3%+12.1%
Q2 2020+15.4%+11.2%-3.0%
Q1 2020-6.9%-5.8%-10.0%
Q4 2019+3.9%+6.2%+3.8%
Q3 2019+5.6%+14.3%+10.4%
Q2 2019+6.3%+2.8%-4.1%
Q1 2019+3.3%+3.9%-4.6%
Q4 2018-14.6%-15.7%-18.9%
Q3 2018-8.7%-14.7%-9.8%
Q2 2018+5.2%+5.1%-1.6%
Q1 2018-6.0%-4.7%-2.9%
Q4 2017-3.4%-7.0%-9.5%
Q3 2017-7.6%-7.7%-4.5%
Q2 2017-5.3%-5.3%-4.2%
Q1 2017+5.0%+1.3%+6.3%
Q4 2016+3.4%+2.0%+4.9%
Q3 2016-11.6%-11.3%-16.7%
Q2 2016-2.2%
Q1 2016-5.7%
Q4 2015+2.1%
Q3 2015+3.7%
Q2 2015-3.5%
Q1 2015-8.4%
Q4 2014+0.0%
Q3 2014-1.2%
Q2 2014-10.7%
Q1 2014-10.3%
Q4 2013+9.7%
Q3 2013-3.0%
Q2 2013+5.5%
Q1 2013+2.1%
Q4 2012+6.3%
Q3 2012+5.5%
Q2 2012+3.2%
Q1 2011-2.6%
Q1 2012-15.5%
Q4 2011-11.6%
Q2 2011-11.6%
Q4 2009-4.2%
Q3 2011-4.2%
Q3 2010-4.2%
Q4 2010-4.2%
Q2 2010+1.2%

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