The company is beginning to achieve sales from e-commerce but at a small level at this time. PriceSmart continues to increase options for last mile delivery. PriceSmart is expected to see positive comps within its food and fresh categories as well as from soda and beverages, pet supply, seafood, and meats.
Analysts expect the company’s earnings to plunge by 24.60% to $0.46 per share while revenue will rise by 1.20% to $791.38 million for the third quarter. In comparison, during the previous year quarter, the company posted a profit of $0.61 per share on revenue of $782.2 million. The company has missed analysts’ expectations thrice in the past four quarters.
For the second quarter, PriceSmart reported a 68% jump in earnings helped by lower income taxes provision. The results were negatively impacted by costs related to investments to expand its omnichannel capabilities as well as operating results of its marketplace and casillero business. Revenue rose 2% year-over-year. Comparable net merchandise sales declined by 0.9%.
Shares of PriceSmart opened higher on Monday and is trading in the green territory on the Nasdaq. The stock has fallen over 34% in the past year and over 10% in the past three months.