QUOTE AND NEWS
StreetInsider.com  Sep 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/PriceSmart+%28PSMT%29+Comps+Rose+2.3%25+in+August/9820650.html for the full story.
Benzinga  Sep 10  Comment 
Below are the top mid-cap discount, variety stores stocks on the NYSE and the NASDAQ in terms of earnings per share. The trailing-twelve-month earnings per share at Family Dollar Stores (NYSE: FDO) is $3.07. Family Dollar's PEG ratio is...
SeekingAlpha  Sep 3  Comment 
By Zacks Investment Research: PriceSmart (NASDAQ:PSMT) shares started their fall from grace early this year after an earnings miss in January for their fiscal first quarter. Since then, the stock has often been showing up as a Zacks #4 Rank (Sell)...
Forbes  Sep 3  Comment 
Shareholders of PriceSmart Inc (NASD: PSMT) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2015 covered call at the $95 strike and collect the premium based on the $4.10 bid, which annualizes...
SeekingAlpha  Aug 28  Comment 
By Nicholas Pardini: Pricesmart (NASDAQ:PSMT) is the Costco of Central America and the Caribbean. It operates warehouse clubs in Costa Rica, Panama, Trinidad and Tobago, Guatemala, the Dominican Republic, Colombia, El Salvador, Honduras, Aruba,...
SeekingAlpha  Jul 29  Comment 
By David Hernandez: Comp Sales PriceSmart (NASDAQ:PSMT) is a warehouse retailer with locations throughout the Caribbean and Central America. In Q3 2014, PriceSmart reported comparable sales growth of 2.9%. The 2.9% growth rate was...
SeekingAlpha  Jul 22  Comment 
By Zacks Investment Research: PriceSmart Inc. (NASDAQ:PSMT) recently reported fiscal third quarter results where sales were less than inspiring. As a result, analysts have slashed earnings estimates on this Zacks Rank #5 (Strong Sell). ...
Motley Fool  Jul 14  Comment 
The Latin American wholesaler reports underwhelming earnings, but that might be good news for investors looking to buy in.
SeekingAlpha  Jul 11  Comment 
PriceSmart, Inc. (PSMT) Q3 2014 Results Earnings Conference Call July 11, 2014, 12:00 PM ET Executives John Heffner - EVP & CFO Jose Luis Laparte - President & CEO Analysts Ronald Bookbinder - Benchmark Company Patricio...
Forbes  Jul 11  Comment 
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

PriceSmart is the largest membership warehouse club operator in Central America and the Caribbean. The company has four types of merchandise: sundries, food, hardlines, and softlines but it also receives revenues from membership holders.[1] PriceSmart operates 26 stores with the majority of them in Costa Rica (5) and Columbia Panama (4).[2] However, because most of its operations are based globally, PSMT exposes itself to international risk. In addition, with many of its larger competitors looking to expand globally into PSMT's markets, PSMT's revenues can be negatively affected with its disadvantage in brand name recognition and company size.

Business Growth

Net sales increased 11.5% to $1.40 billion. Net income increased 16.5% to $49.3 million.[3] These positive results are attributed to PSMT's expansion during the year with acquisition of real estate and new store openings.[4]

Trends and Forces

PSMT's global presence exposes it to international risks

PSMT's sales consist almost entirely of its international operations with 27 warehouse clubs operating outside of North America. In addition, PSMT is continuously looking to expand its operations in its current geographic region, such as its acquisition of a new Costa Rica warehouse club and property in Panama and Trinidad in FY 2009.[5] As a result, with global operations, PSMT is exposed to risks such as foreign exchange rates, changes in tariff and tax laws, trade restrictions, political/economic/social conditions in these foreign countries, etc.

PSMT faces significant competition in the form of internationally expanding North American retailers

Although PSMT is the largest warehouse distributor in Central America and the Caribbean, it is not the largest globally. Instead, its direct competitors, such as Walmart, Costco, and Target are all significantly larger and rank 1st, 8th, and 9th in largest global retailers by revenue.[6] In addition, these stores have moved to expand internationally; for example, with Walmart having successfully penetrated Brazil, Costa Rica, and other parts of Central America and with Costco and Target looking to expand internationally as well. As a result, these competitors have greater resources, buying power, and name recognition, which could draw PSMT's current customers. In turn, this could negatively impact PSMT's revenues.[7]

Competitors

  • Costco Wholesale (COST) is currently the largest membership warehouse chain the US. While this may not directly interfere with PSMT's current locations, it can become competition as PSMT looks to expand internationally.[8]
  • Wal-Mart (WMT) has Sam's Club as a warehouse chain equivalent which is not as big as Costco Wholesale (COST) but serves similar discounted and bulk products.[9]

However, PSMT differentiates itself from its competition through smaller store sizes, lower membership fees, and tailored merchandise according to local preferences.[10]

References

  1. http://www.pricesmart.com/Investor/IR_Intro%20to%20PSMT.pdf
  2. http://www.pricesmart.com/Investor/Annual-Reports/2010AnnRpt.pdf
  3. http://www.pricesmart.com/Investor/Annual-Reports/2010AnnRpt.pdf
  4. http://www.pricesmart.com/Investor/News-Releases/110910.htm
  5. http://www.sec.gov/Archives/edgar/data/1041803/000104180310000041/form10k.htm
  6. http://www.nxtbook.com/nxtbooks/nrfe/stores_globalpowers0109/
  7. http://www.sec.gov/Archives/edgar/data/1041803/000104180310000041/form10k.htm
  8. http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-homeprofile
  9. http://www3.samsclub.com/NewsRoom/AboutUs/Facts
  10. http://www.pricesmart.com/Investor/
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki