PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company ...
PriceSmart, Inc. (PSMT) is a leading operator of membership warehouse clubs, primarily in Central America, the Caribbean, and Colombia, with a growing presence in the United States. Founded in 1994 by Sol and Robert Price (pioneers of the warehouse club model) and headquartered in San Diego, California, PriceSmart has grown ...PriceSmart, Inc. (PSMT) is a leading operator of membership warehouse clubs, primarily in Central America, the Caribbean, and Colombia, with a growing presence in the United States. Founded in 1994 by Sol and Robert Price (pioneers of the warehouse club model) and headquartered in San Diego, California, PriceSmart has grown to operate over 50 clubs across 12 countries. The company was spun off from Price/Costco in 1994 and became publicly traded in 1997. Under the leadership of CEO David N. Price, who took office in September 2023, the company continues to expand its footprint and enhance its offerings.
PriceSmart operates on a membership model, charging annual fees that provide access to discounted merchandise and services. The company's product portfolio includes private label items under the Member's Selection brand, covering groceries, cleaning supplies, health and beauty aids, fresh produce, meat, deli items, and more. Additionally, it offers electronics, appliances, apparel, home furnishings, and seasonal goods, catering to both individual and business members. Beyond retail, PriceSmart provides services such as optical, audiology, and pharmacy departments, as well as food and bakery services. The company has also invested in e-commerce, offering online ordering with curbside pickup and delivery to meet changing consumer preferences.
Financially, PriceSmart demonstrates robust performance with a market capitalization of approximately $5.5 billion and annual revenues exceeding $5.7 billion. The company maintains a strong balance sheet with manageable debt levels, as indicated by a debt-to-equity ratio of 0.234. Its operational efficiency is evident from inventory turnover of 7.5 times and a gross profit margin of 17.6%. PriceSmart has consistently paid dividends, with a recent dividend yield of 0.8%.
The company's strategic focus includes expanding into new markets, enhancing its digital capabilities, and maintaining low price leadership. With approximately 12,000 employees, PriceSmart is committed to delivering value to its members while fostering sustainable growth. Its leadership team, including Chairman Robert Price and CEO David N. Price, continues to drive innovation and operational excellence, positioning PriceSmart for long-term success in the competitive retail landscape.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$5.3B
+7.2%
-0.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$144.9M
+5.7%
-19.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+17.4%
+0.7%
-0.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+4.5%
-1.8%
-12.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.7%
-1.5%
-18.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$103.2M
+164.2%
-74.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+2.0%
+146.4%
-73.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
26.4%
+18.7%
+0.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.34x
+9.6%
-6.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning or good afternoon, everyone. Welcome to PriceSmart Inc.'s earnings release conference call for the third quarter of fiscal year 2026, which ended on May 31st, 2026. After remarks from our company's representative, David Price, Chief Executive Officer, and Gualberto Hernandez, Chief Financial Officer, you will be given an opportunity to ask questions as time permits. As a reminder, this conference call is limited to one hour and is being recorded today, Thursday, July ninth, 2026. A digital replay will be available shortly following the conclusion of the call through Thursday, July 16th, 2026, by dialing 1-800-770-2030 for domestic callers or 1-647-362-9199 for international callers and entering replay access code 5898084#. For opening remarks, I would like to turn the call over to PriceSmart's Chief Financial Officer, Gualberto Hernandez. Please proceed, sir.
Gualberto Hernandez: Thank you, operator. Welcome to PriceSmart Inc.'s earnings call for the third quarter of fiscal year 2026, which ended on May 31st, 2026. We will be discussing the information that we provided in our earnings press release and our 10-Q, which were both released yesterday on July eight, 2026. Also in these remarks, we refer to non-GAAP financial measures. You can find a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measures in our earnings press release and our 10-Q. These documents are available on our investor relations website at investors.pricesmart.com, where you can also sign up for email alerts. As a reminder, all statements made on this conference call, other than statements of historical fact, are forward-looking statements concerning the company's anticipated plans, revenues, and related matters. Forward-looking statements include, but are not limited to, statements containing the words expect, believe, plan, will, may, should, estimate, and some other expressions. All forward-looking statements are based on current expectations and assumptions as of today, July nine, 2026. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks detailed in the company's most recent annual report on Form 10-K, the quarterly report on Form 10-Q filed yesterday, and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These risks may be updated from time to time. The company undertakes no obligation to update forward-looking statements made during this call. I will turn the call over to David Price, PriceSmart's Chief Executive Officer.
David Price: Thank you, Gualberto. Good morning, everyone. Thank you for joining us today. We are happy with the strong results from the third quarter. These results reflect the strength of our offering, the loyalty of our members, and the dedication and passion of every employee across our 14 countries who show up every day to do right by our members and to live our values. I …