QUOTE AND NEWS
TheStreet.com  Apr 14  Comment 
NEW YORK (TheStreet) -- Shares of PriceSmart Inc. are up 3.07% to $95.57 on Monday after the shopping warehouse chain received a ratings upgrade. PriceSmart was upgraded to "buy" from "neutral" at Roth Capital Partners due to a recent pullback...
SeekingAlpha  Apr 10  Comment 
PriceSmart, Inc (PSMIT) Q2 2014 Earnings Conference Call April 10, 2014 12:00 ET Executives John Heffner - EVP & CFO Jose Luis Laparte - President & CEO Analysts Ronald Bookbinder - Benchmark Company Jon Braatz -...
TheStreet.com  Apr 10  Comment 
NEW YORK (TheStreet) -- Shares in PriceSmart Inc.  are trading lower 8.58% to $93.15 on Thursday following the company's FQ2 report, which showed mixed earnings results. An increase in sales helped the San Diego-based shopping warehouse...
StreetInsider.com  Apr 9  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Pricesmart%2C+Inc.+%28PSMT%29+Tops+Q2+EPS+by+4c/9367558.html for the full story.
DailyFinance  Mar 7  Comment 
SAN DIEGO, CA -- (Marketwired) -- 03/07/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of February 2014, net sales increased 11.0% to $182.8 million from $164.7 million in February a year earlier. For the six months...
DailyFinance  Feb 7  Comment 
SAN DIEGO, CA -- (Marketwired) -- 02/07/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of January 2014, net sales increased 11.5% to $193.5 million from $173.5 million in January a year earlier. For the five months ended...
DailyFinance  Jan 23  Comment 
SAN DIEGO, CA -- (Marketwired) -- 01/23/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that its Board of Directors has declared cash dividends in the total amount of $0.70 per share, with $0.35 per share payable on February 28, 2014 to...
SeekingAlpha  Jan 11  Comment 
Call Start: 12:00 Call End: 12:47 Pricesmart, Inc. (PSMT) Q1 2014 Earnings Call January 10, 2014 12:00 pm ET Executives John Heffner - Executive Vice President and Chief Financial Officer Jose Luis Laparte - Chief Executive...
TheStreet.com  Jan 9  Comment 
NEW YORK (TheStreet) -- After taking off 2.5% in Thursday's session, PriceSmart  is booking further losses after the bell following lower-than-expected first-quarter earnings. In extended trading, shares lost 3.2% to $104.10. The membership-only...
DailyFinance  Jan 9  Comment 
SAN DIEGO, CA -- (Marketwired) -- 01/09/14 -- PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the first quarter of fiscal year 2014 which ended on November 30, 2013. For the first quarter of fiscal year 2014, net...




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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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