PriceSmart, Inc. (NASDAQ: PSMT) rose in Friday trading, a day after the company reported stronger-than-expected results for its second quarter on Thursday.
The San Diego-based company announced Thursday net warehouse club sales increased 5.7% to $816.6 million from $772.3 million in the second quarter of fiscal year 2017.
Total revenues for the second quarter of fiscal year 2018 were $839.6 million compared to $793.3 million in the comparable period of the prior year. The Company had 40 warehouse clubs in operation as of February 2018 and 39 clubs in operation as of February 2017.
The Company recorded operating income during the quarter of $37.3 million, as compared to $39.4 million in the prior year. Operating income in the current period included the impact of a $2.6 million charge associated with the Company ending its internal on-line platform development as a result of the acquisition of Aeropost, Inc., and $525,000 in deal costs associated with the acquisition.
Net income was $14.1 million, or $0.47 per diluted share, in the second quarter of fiscal year 2018 as compared to $27.2 million, or $0.90 per diluted share, in the second quarter of fiscal year 2017.
The Company's results for the second quarter of fiscal year 2018 reflect the effect of U.S. Tax Reform.
The price of PriceSmart shares popped $8.50, or 10.2%, to $92.15, in the upper end of a 52-week trading range of $77.50 to $94.00
