PriceSmart, Inc.

What they do

PriceSmart owns and operates membership warehouse clubs selling basic consumables, private-label "Member's Selection" merchandise and products often unavailable in its markets. It sources roughly half of its merchandise from suppliers within Latin America and the Caribbean, with the balance sourced from the United States and globally. The company operates through four segments: the United States, Central America, the Caribbean and Colombia, and supplements in-club sales with PriceSmart.com, its mobile app and Click & Go home delivery and curbside pickup. Membership fees let it run lower margins than traditional retail.

Revenue drivers

• Colombia clubs — Ten of the 57 clubs were in Colombia as of May 31, 2026, making it the largest single country by club count; the segment is reported separately as Colombia.
• Central America clubs — The largest cluster by count, with nine clubs in Costa Rica, seven each in Panama and Guatemala, four in El Salvador, three in Honduras and two in Nicaragua.
• Caribbean clubs — Includes five clubs in the Dominican Republic, four in Trinidad, two in Jamaica and one each in Aruba, Barbados and the U.S. Virgin Islands, reported as the Caribbean segment.
• Membership and other revenue — Annual membership fees with over two million membership accounts and over four million cardholders enable lower merchandise margins; total revenues also include other revenue beyond net merchandise sales.

Recent performance

For the fiscal third quarter ended May 31, 2026, total revenues rose 12.5% to $1.48 billion and net merchandise sales rose 12.5% to $1.45 billion, with comparable net merchandise sales up 10.7%. Foreign currency fluctuations added $50.6 million, or 4.0%, to net merchandise sales; constant-currency net merchandise sales grew 8.5% and constant-currency comparable sales grew 6.9%. Operating income was $65.6 million versus $56.2 million a year earlier, net income rose 12.9% to $39.7 million, or $1.28 per diluted share, and Adjusted EBITDA was $90.4 million versus $79.0 million. Year to date, total revenues rose 10.7% to $4.36 billion and net income rose 10.8% to $128.9 million, or $4.18 per diluted share.

Strategy

PriceSmart is expanding its club base from 57 toward 59 clubs, with planned openings in La Romana, Dominican Republic and Montego Bay and South Camp Road, Jamaica, plus an eleventh club in Costa Rica and further sites under lease. It is entering Chile with a first club in Comuna Las Condes, Santiago, inside Mallplaza Los Dominicos, anticipated to open in spring 2027, which management describes as the foundation for a potential multi-club market. The company continues investing in technology to improve the digital shopping experience and supply chain and back-office efficiency, supported by two regional distribution centers in Miami and Costa Rica. It also cites over 13,000 employees and ongoing community programs through Price Philanthropies and the PriceSmart Foundation.

Risks

• International operations concentration — Nearly all of total revenues come from international operations, exposing results to tariffs and taxes, trade restrictions, expropriation risk, currency volatility, conversion limits and supply-chain interruption.
• Foreign currency exposure — Currency fluctuation is described as one of the largest variables affecting sales and profit, and in the latest quarter foreign exchange added $50.6 million, or 4.0%, to net merchandise sales, so a reversal would pressure reported growth.
• Political and social instability — The 10-K cites civil unrest in Panama in the third quarter of fiscal 2025 and in Colombia in 2022 and 2021, and anti-government protests in Panama and Guatemala in 2023, which can disrupt sales, banking and merchandise shipments.
• Inflation and supply chain costs — Inflationary pressures could raise product costs and commodity increases could reduce sales, units sold or margins, as occurred with pandemic-era inventory markdowns and elevated shipping and freight rates.

Outlook

Management points to one new club opening in fiscal 2026, five anticipated openings in fiscal 2027 (including a first club in Chile), and plans to reach 59 clubs once La Romana, Montego Bay and South Camp Road are open. It describes Chile as promising for a multi-club market over time, with a spring 2027 opening targeted. The company also continues to invest in technology and distribution to support growth and operating efficiency.