Pricesmart Inc - PSMT STOCK NEWS

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PriceSmart, Inc. (NASDAQ: PSMT) is the leading operator of membership-based warehouse clubs in Central America and the Caribbean, with an expanding presence in South America through Colombia. Based in San Diego, California, PriceSmart manages 54 warehouse clubs across 12 countries and one U.S. territory. The company’s business model mirrors that of U.S. warehouse giants like Costco and Sam’s Club, offering high-quality consumer goods at competitive prices to its members.

Founded by Sol and Robert Price, who also founded The Price Club, PriceSmart's operations are tailored to meet local market demands. The stores are smaller in size, ranging from 50,000 to 75,000 square feet, and offer a lower membership fee averaging around $35.00. The merchandise is specifically curated to cater to the preferences of both local retail and wholesale customers.

PriceSmart's primary revenue streams include net warehouse club sales from merchandise, annual membership fees, export sales, and other income, with merchandise sales forming the bulk of the revenue. As of recent updates, PriceSmart operates 54 warehouse clubs with a strong footprint in countries such as Colombia, Costa Rica, Panama, and the Dominican Republic, among others. The company plans to expand further with new clubs opening in regions like Escuintla, Guatemala, and Santa Ana, El Salvador.

In fiscal year 2024, PriceSmart reported impressive financial results, with total revenues for the first quarter increasing by 10.6% to $1.17 billion. The company's net merchandise sales also grew by 10.7% to $1.14 billion, driven by a favorable foreign currency exchange impact of $40 million. Operating income for the first quarter reached $58.2 million, with net income climbing to $38 million, or $1.24 per diluted share.

Notably, PriceSmart recently completed a $75 million share repurchase program, further reflecting confidence in its financial stability and robust performance. Additionally, the company declared a $1.00 per share special dividend, underscoring its commitment to returning value to shareholders. Looking ahead, PriceSmart continues to focus on expansion and operational excellence, with plans to open new clubs in various strategic locations.