PSMT

Management Overview: CEO David Price and CFO Gualberto Hernandez highlighted their positive outlook and strategic initiatives, including a new corporate headquarters in San Diego and expansion plans for warehouse clubs in Guatemala, Jamaica, and the Dominican Republic.

Financial Performance: PriceSmart reported over $1.3 billion in net merchandise sales for Q4 2025, with a 9.2% increase year-over-year, and total revenues nearing $5.3 billion for the fiscal year, reflecting a 7.7% growth.

Digital and Membership Growth: Digital sales surged to $306.7 million, accounting for 6% of total sales, while private label penetration rose to 28.1% and platinum membership increased to 17.9%, indicating strong customer engagement.

Future Outlook: The company plans to open three new clubs in fiscal 2026 and continue investing in technology and supply chain improvements, with management expressing optimism about future growth despite potential risks from external factors.

Fourth Quarter Financial Performance: PriceSmart reported a 9.2% increase in net merchandise sales, reaching $1.30 billion, with total revenues up 8.6% to $1.33 billion for the fourth quarter of fiscal year 2025. Net income rose 8.5% to $31.5 million, or $1.02 per diluted share.

Year-to-Date Financial Results: For the fiscal year ending August 31, 2025, total revenues increased by 7.2% to $5.27 billion, while net merchandise sales grew by 7.7% to $5.15 billion. Net income for the year was $147.9 million, a 6.5% increase compared to the previous year.

Expansion Plans: PriceSmart plans to open three new warehouse clubs in Jamaica and the Dominican Republic by 2026, which will increase its total number of clubs to 59.

Non-GAAP Financial Measures: The company highlighted the use of non-GAAP financial measures such as adjusted EBITDA and constant currency sales to provide a clearer picture of its operational performance, excluding the effects of foreign currency fluctuations.

Overbought Stocks in Consumer Staples: As of September 29, 2025, three stocks in the consumer staples sector—PriceSmart Inc, United Natural Foods Inc, and Empro Group Inc—are identified as overbought, with RSI values above 70, indicating potential caution for momentum-focused investors.

PriceSmart Inc Performance: PriceSmart reported strong Q3 results, leading to a 13% stock gain over the past month, closing at $120.94 with an RSI of 73.

United Natural Foods Inc Upgrade: Following an upgrade from BMO Capital, United Natural Foods saw a 12% increase in stock price, closing at $31.62 with an RSI of 70.6.

Empro Group Inc Surge: Empro Group experienced a significant 61% stock increase after its IPO, closing at $16.88 with an RSI of 82.2, indicating it may be overbought.