Q1 2026 PriceSmart Inc Earnings Call Transcript
Key Points
- Pricesmart Inc (PSMT) reported strong net merchandise sales growth of 10.6% year-over-year, reaching almost $1.4 billion in the first quarter.
- Membership accounts grew by 6.7% year-over-year, with a high renewal rate of 89.3%, indicating strong customer loyalty.
- The company is expanding its footprint with new clubs planned in the Dominican Republic, Jamaica, and Costa Rica, and is entering the Chilean market.
- Digital channel sales increased by 29.4% year-over-year, marking the highest digital contribution to date.
- Pricesmart Inc (PSMT) is investing in supply chain improvements and technology upgrades, including new distribution centers and a new point of sale system, to enhance operational efficiency.
- SG&A expenses increased to 13.1% of total revenues, up from 12.8% in the previous year, primarily due to technology investments and CEO compensation.
- The company faced supply chain disruptions in Panama and consumer uncertainty in Honduras due to elections, impacting December sales.
- Foreign currency-related losses contributed to a net loss in total other expenses for the quarter.
- Private label sales penetration decreased by 70 basis points due to a reclassification of the produce category.
- Cash equivalents and short-term investments in Trinidad are not readily convertible to US dollars, posing potential liquidity challenges.
Good afternoon everyone and welcome to PriceSmart Inc's earnings release conference call for the first quarter of fiscal year 2026, which ended on November 30, 2025. After remarks from our company's representatives, David Price, Chief Executive Officer, and Gilberto 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, January 8, 2026.
A digital replay will be available shortly following the conclusion of the call through January 15, 2026 by dialing 1-800-770-2030 for domestic callers or 1-647362. 9,199 for international callers and entering replay access code GBP5,898,084.
For opening remarks, I would like to turn the call over to Price March's Chief Financial Officer, Gilberto Hernandez. Please proceed, sir.
Thank you, operator, and welcome to PriceSmart Inc.âs earnings call for the first quarter of
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