QUOTE AND NEWS
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...
Benzinga  Jul 11  Comment 
Darden Restaurants (NYSE: DRI) shares reached a new 52-week low of $44.40. Darden shares have dropped 11.24% over the past 52 weeks, while the S&P 500 index has gained 16.93% in the same period. Timken Co (NYSE: TKR) shares touched a new 52-week...
Benzinga  Jul 11  Comment 
Kofax (NASDAQ: KFX) shares declined 13.30% to $7.01 after the company reported selected preliminary unaudited results for FY14. Kofax expected FY14 sales of $295.0 million to $298.0 million. Isle of Capri Casinos (NASDAQ: ISLE) shares dipped...
Benzinga  Jul 10  Comment 
Shares of PriceSmart Inc. (NASDAQ: PSMT) fell four percent after the close Thursday following fiscal third-quarter sales that fell short of analyst estimates. The San Diego-based operator of warehouse clubs said revenue for the quarter totaled...
MarketWatch  Jul 10  Comment 
Gap shares decline in the extended session after the apparel retailer turns in a surprise drop in June same-store sales.
TheStreet.com  Jul 10  Comment 
NEW YORK (TheStreet) -- PriceSmart  fell in after-hours trading on Thursday after the membership warehouse clubs operator reported third-quarter earnings that came up short of analysts' expectations. PriceSmart reported net income of $21.3...
StreetInsider.com  Jul 9  Comment 
The Trading Radar highlights key earnings and economic announcements for the next trading session: Before Markets Open: Economics: 8:30am EDT Initial Claims - Street sees 311K Continuing Claims - Street sees 2.567M Earnings: Family Dollar...
Motley Fool  Jul 8  Comment 
The international big-box warehouse retailer aims to beat the success of its U.S. counterparts.




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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/
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