Q2 2026 PriceSmart Inc Earnings Call Transcript
Key Points
- Pricesmart Inc (PSMT) reported strong growth in the second quarter, with net merchandise sales increasing by 9.9% and total revenue reaching almost $1.5 billion.
- Membership renewal rates reached an all-time high of 90.2%, indicating strong customer loyalty and satisfaction.
- The company is expanding its footprint with new club openings in the Dominican Republic, Jamaica, Costa Rica, and Guatemala, enhancing its market presence.
- Digital channel sales grew by 23.4% year-over-year, reflecting successful investments in omnichannel capabilities.
- Gross margin improved by 50 basis points to 16.1%, driven by shifts in product mix and cost savings from Asia consolidation efforts.
- SG&A expenses increased to 12.7% of total revenues, partly due to currency appreciation in Colombia and increased technology investments.
- The company recorded an $8.7 million net loss in total added expense, primarily due to foreign currency-related losses.
- Higher inventory balances led to a $9 million use of cash in operating activities, impacting cash flow.
- There are potential macroeconomic challenges in Central America and the Caribbean due to dependency on remittances and oil imports.
- The ongoing military conflicts and evolving trade policies pose risks to transportation costs and supply chain stability.
Good afternoon everyone and welcome to Price Smarts Inc.'s earnings release conference call for the second quarter of fiscal year 2026, which ended on February 28, 2026. After remarks from our company's representatives, David Price, Chief Executive Officer and Roberto 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, April 9, 2026. A digital replay will be available shortly following the conclusion of the call through April 16, 2026, by dialing 1-800-770-2030 for domestic callers or 1-647-362-9199 for international callers and entering replay access code 589-8084.
For opening remarks, I would like to turn the call over to PriceSmart's Chief Financial Officer, Roberto Hernandez. Please proceed, sir.
Thank you, operator, and welcome to PriceSmart Inc.'s earnings call for the second quarter of fiscal year 2026, which
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