PriceSmart Inc. (NASDAQ: PSMT) is scheduled to report its earnings results for the third quarter of 2019 on Wednesday after the market closes. The membership-style shopping warehouse club operator’s results will be hurt by income tax provision as well as costs from omnichannel capabilities expansion.
The results are expected to be impacted by the continuation of foreign currency devaluation as well as some of the geopolitical and economic impacts arising from trade uncertainty. The company expects the new format concept, which incorporates omnichannel and an e-commerce platform, to open up additional real estate and growth opportunities in the future.
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.
Most Popular
PG Earnings: Procter & Gamble Q3 profit climbs, beats estimates
Consumer goods behemoth The Procter & Gamble Company (NYSE: PG) announced financial results for the third quarter of 2024, reporting a double-digit growth in net profit. Sales rose modestly. Core
AXP Earnings: All you need to know about American Express’ Q1 2024 earnings results
American Express Company (NYSE: AXP) reported its first quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, increased 11% year-over-year to $15.8 billion, driven mainly by higher
Netflix (NFLX) Q1 2024 profit tops expectations; adds 9.3Mln subscribers
Streaming giant Netflix, Inc. (NASDAQ: NFLX) Thursday reported a sharp increase in net profit for the first quarter of 2024. Revenues were up 15% year-over-year. Both numbers exceeded Wall Street's
