Total revenue rose 0.8% year-over-year to $788.6 million. Net merchandise sales moved up 0.6% as foreign currency exchange rate fluctuations negatively impact the sales by 3.7%.
Comparable net merchandise sales, for the 40 warehouse clubs that have been open for greater than 13 ½ calendar months, declined by 0.8% year-over-year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 3.8% versus the previous year quarter.
The company had 42 clubs in operation as of May 31, 2019, compared to 41 warehouse clubs in operation as of May 31, 2018. The company continues to explore and negotiate for other potential sites for future warehouse clubs in Central America, the Caribbean, and Colombia.
PriceSmart said that while its investments are focused on long-term growth, it could impact near-term results. This included incurring of fixed costs in advance of achieving full projected sales and reduction of comparable net merchandise sales due to the transfer of sales from existing warehouse clubs when opening new warehouse club in an existing market.
Shares of PriceSmart ended Wednesday’s regular session up 3.30% at $55.48 on the Nasdaq. Following the earnings release, the stock plunged over 10% in the after-market session.
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