SAN DIEGO, CA-based PriceSmart Inc. PSMT, announced its quarterly results on Thursday, as it posted higher profit and revenue for the last quarter, but results fell short of analysts revenue target.
Warehouse club Operator Company, which have the greater part of its trade in foreign countries, has mainly attributed a sales slowdown on the sturdier U.S. dollar and lower demand in major markets, such as Panama and Costa Rica.
Over all, PriceSmart, Inc. (NASDAQ:PSMT) first-quarter profit surged 5% to $24.9 million, or 82 cents a share. In the meantime, revenue surged 3.9% to $739.6 million, in contrast with an 8.5% surge in the year-ago period.
Analysts surveyed by Thomson Reuters had predictions of 81 cents a share on $743.3 million in sales.
Company’s Warehouse club sales, which account for the most of revenue, rose 3.7% but were counterbalance by a 4% rise in operating expenses.
PriceSmart, Inc. (NASDAQ:PSMT) , which closed the three month period with 39 membership warehouse clubs, traces its roots to the late retail magnate Sol Price’s Price Clubs, which later combined with Costco Wholesale Corp.
Often Mr. Price is accredited with initiating the members-only warehouse-club business model that sells goods in masses at just above wholesale prices.
The PriceSmart (PSMT) stock surged 2.6% over the past 12 months, dropped 1.4% to $81.75 in afterhours trading.