PriceSmart, Inc. (NASDAQ: PSMT) reported weaker-than-expected earnings for its third quarter, while sales exceeded estimates.
The San Diego-based company announced Friday that, for the quarter ending May 31, 2018, net warehouse club sales increased 5.6% to $750.5 million from $710.7 million in the third quarter of fiscal year 2017.
Total revenues for the third quarter of fiscal year 2018 increased 7.1% to $782.2 million from $730.3 million in the comparable period of the prior year. The Company had 41 warehouse clubs in operation as of May 2018 and 39 clubs in operation as of May 2017.
Total selling, general and administrative expenses in the quarter were $101.1 million or 12.9% of total revenues compared to 11.6% a year ago. SG&A this year includes the cost of two additional warehouse clubs, Santa Ana, Costa Rica that opened in October 2017, and Santo Domingo, Dominican Republic that opened in May 2018.
In addition, the Company had an increase in SG&A costs of approximately $8.0 million, related to Aeropost operations.
The Company recorded operating income during the quarter of $28.4 million, as compared to $27.6 million in the prior year. Net income was $18.7 million, or $0.61 per diluted share, in the third quarter of fiscal year 2018 as compared to $18.8 million, or $0.62 per diluted share, in the third quarter of fiscal year 2017.
Share prices for PriceSmart faded $9.07, or 9.7%, to $84.34, within a 52-week trading range of $77.50 to $94.45.
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