PriceSmart, Inc. (NASDAQ:PSMT) reported better-than-expected earnings for its first quarter, while sales missed views.
The San Diego-based company reported total revenues for the first quarter of fiscal year 2020 increased 4.1% to $811.9 million compared to $779.6 million in the first quarter of the prior year.
Net merchandise sales increased 4.2% to $778.7 million from $747.4 million in the prior-year quarter. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $12.2 million or 1.6% of net merchandise sales.
The Company had 45 clubs in operation as of November 30, 2019, compared to 41 warehouse clubs as of November 2018.
PSMT recorded operating income for the first quarter of fiscal year 2020 of $30.7 million, as compared to operating income of $24.7 million in the prior year. Net income attributable to PriceSmart was $19.7 million, or $0.64 per diluted share, in the first quarter of fiscal year 2020.
Net income in the first quarter of fiscal year 2019 was $14.6 million, or $0.48 per diluted share. The first quarter fiscal 2019 earnings were negatively impacted by $3.8 million or $0.13 per share from the separation related costs associated with the resignation of the firm’s former Chief Executive Officer by mutual agreement with the Company's board in November 2018.
PriceSmart owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members.
PriceSmart shares faded $1.44, or 2.1%, to $66.45
