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    PSMT
    Earnings call· Feb 2026(Q2 FY26)

    PRICESMART Q2 FY26 earnings call PSMT

    Apr 9, 2026 Source

    Executive summary

    PriceSmart Q2 FY26 — Strong Sales Growth and Record Membership Renewal

    PriceSmart delivered a strong second quarter, marked by broad-based sales growth and a record-high membership renewal rate, indicating strong member value perception. The company continues to invest in strategic initiatives including real estate expansion, supply chain transformation, and technology upgrades to enhance operational efficiency and future growth. While navigating currency volatility and macroeconomic pressures, management remains focused on driving value and expanding its footprint, particularly in new markets like Chile.

    Highlights

    6

    • Net merchandise sales increased by 9.9% (7.8% constant currency) to almost $1.5 billion.

    • Comparable net merchandise sales increased by 7.6% (5.5% constant currency).

    • Membership renewal rate reached an all-time high of 90.2%.

    • Platinum membership base grew to 19.5% of total, up from 14.5% last year.

    • Digital channel sales reached a record $94.1 million, up 23.4% YoY, representing 6.4% of total net merchandise sales.

    • Operating income increased 15.6% to $75.4 million and Adjusted EBITDA grew 14.6% to $99.7 million.

    Concerns

    4

    • SG&A expenses increased 30 basis points to 12.7% of total revenues, primarily due to Colombian peso appreciation, technology investments, and executive officer compensation.

    • Net loss in total other expense increased to $8.7 million from $5.1 million, mainly due to foreign currency-related losses from Costa Rican colon appreciation.

    • Higher overall inventory balances used $9 million of cash in operating activities.

    • Net cash used in investing activities increased by $89.9 million, primarily due to changes in short-term investments and property/equipment expenditures.

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Central America
    Segment had 32 clubs at quarter end. Contributed significantly to overall comparable sales growth.
    Club count: 32Comparable net merchandise sales growth: 4.7% (4% constant currency)Contribution to consolidated comparable net merchandise sales growth: 280 bps
    		—8.6%——
    Caribbean
    Segment had 14 clubs at quarter end. Contributed positively to overall comparable sales growth.
    Club count: 14Comparable net merchandise sales growth: 4.2% (5.1% constant currency)Contribution to consolidated comparable net merchandise sales growth: 120 bps
    		—4.3%——
    Colombia
    Segment had 10 clubs at quarter end. Growth driven by Colombian peso appreciation, member traffic, and merchandise offering strengthening. Largest contributor to consolidated comparable sales growth.
    Club count: 10Comparable net merchandise sales growth: 31.3% (14.7% constant currency)Contribution to consolidated comparable net merchandise sales growth: 360 bps
    		—30.5%——

    Operational metrics

    43
    Net merchandise sales
    $1.5 billionup 9.9% YoY
    Q2 FY26

    Total net merchandise sales for the second quarter.

    Total revenue
    almost $1.5 billion
    Q2 FY26

    Total revenue for the second quarter.

    Net merchandise sales
    over $2.8 billionup 10.2% YoY
    H1 FY26

    Total net merchandise sales for the first half of the fiscal year.

    Total revenue
    almost $2.9 billion
    H1 FY26

    Total revenue for the first half of the fiscal year.

    Average sales ticket growth
    2.2%vs prior year period
    Q2 FY26

    Growth in average sales ticket during the second quarter.

    Transactions growth
    7.5%vs prior year period
    Q2 FY26

    Growth in transactions during the second quarter.

    Average price per item increase
    3.3%YoY
    Q2 FY26

    Year-over-year increase in average price per item.

    Average items per basket decrease
    1%
    Q2 FY26

    Decrease in average items per basket.

    Foods category growth
    9.2%vs prior year
    Q2 FY26

    Growth in the foods category sales.

    Nonfoods category growth
    12.4%
    Q2 FY26

    Growth in the nonfoods category sales.

    Food service and bakery category growth
    12.2%
    Q2 FY26

    Growth in the food service and bakery category sales.

    Health services category growth
    13%
    Q2 FY26

    Growth in health services, including optical, audiology, and pharmacy.

    Membership accounts growth
    7.9%YoY
    Q2 FY26

    Year-over-year growth in total membership accounts.

    Total membership accounts
    2.1 million
    as of Feb 28, 2026

    Total membership accounts at quarter end.

    12-month membership renewal rate
    90.2%all-time high
    as of Feb 28, 2026

    Record high membership renewal rate.

    Platinum membership penetration
    19.5%up from 14.5% prior year
    as of Feb 28, 2026

    Platinum accounts as a percentage of total membership base.

    Membership income as % of revenue
    1.6%vs 1.5% prior year
    Q2 FY26

    Increase driven in part by the shift toward Platinum membership.

    Private label penetration
    26.6%up 50 bps
    H1 FY26

    Private label penetration of total merchandise sales.

    Digital channel sales
    $94.1 millionup 23.4% YoY
    Q2 FY26

    Highest dollar volume to date for digital sales.

    Orders via website/app growth
    10.9%
    Q2 FY26

    Growth in orders placed directly through website or app.

    Average digital transaction value growth
    10.8%
    Q2 FY26

    Growth in average transaction value for digital orders.

    Members with online profile
    74.7%
    as of Feb 28, 2026

    Percentage of members who have created an online profile.

    Members making digital purchase
    more than 1 in 4
    as of Feb 28, 2026

    Proportion of members who have made a purchase through pricesmart.com or app.

    Net merchandise sales
    12.3%growth in USD
    4 weeks ended March 29, 2026

    Preliminary sales results for March, skewed higher due to Semana Santa timing.

    Total revenue margins
    17.7%up 60 bps vs 17.1% prior year
    Q2 FY26

    Improved due to warehouse sales margins and membership growth.

    Operating income
    $75.4 millionup 15.6% YoY
    Q2 FY26

    Operating income for the second quarter.

    Operating income
    $138.3 millionup 12% YoY
    H1 FY26

    Operating income for the first six months of the fiscal year.

    Net loss in total other expense
    $8.7 millionvs $5.1 million prior year
    Q2 FY26

    Increased loss primarily due to FX revaluation.

    Net income
    $49.1 millionup 11.7% YoY
    Q2 FY26

    Net income for the second quarter.

    Diluted EPS
    $1.62vs $1.45 prior year
    Q2 FY26

    Diluted earnings per share for the second quarter.

    Adjusted EBITDA
    $99.7 millionup 14.6% YoY
    Q2 FY26

    Adjusted EBITDA for the second quarter.

    Net income
    $89.3 millionup 9.4% YoY
    H1 FY26

    Net income for the first six months of the fiscal year.

    Diluted EPS
    $2.91vs $2.66 prior year
    H1 FY26

    Diluted earnings per share for the first six months of the fiscal year.

    Adjusted EBITDA
    $186.6 millionup 12.3% YoY
    H1 FY26

    Adjusted EBITDA for the first six months of the fiscal year.

    Cash, cash equivalents, and restricted cash
    $195.1 million
    as of Feb 28, 2026

    Total cash balances at quarter end.

    Short-term investments
    $149.7 million
    as of Feb 28, 2026

    Short-term investments at quarter end.

    Trinidad local currency holdings
    $76.9 million
    as of Feb 28, 2026

    Cash, cash equivalents and short-term investments denominated in local currency in Trinidad.

    Net cash provided by operating activities
    $133.3 millionup $6.9 million vs prior year
    H1 FY26

    Net cash from operations for the first six months.

    Net cash used in investing activities
    increased by $89.9 millionvs prior year
    H1 FY26

    Net cash used in investing activities for the first six months.

    Net cash used in financing activities
    increased by $21.7 millionvs prior year
    H1 FY26

    Net cash used in financing activities for the first six months.

    Annual cash dividend
    $1.40up 11.1% vs prior year
    annual

    Dividend declared in February.

    Effective tax rate
    26.4%vs 27.2% prior year
    Q2 FY26

    Effective tax rate for the second quarter.

    Effective tax rate
    27.1%vs 26.9% prior year
    H1 FY26

    Effective tax rate for the first six months of the fiscal year.

    Industry KPIs

    10
    MetricValueDetails
    Sg a rate12.7%% of total revenues
    Marketplace 3p GMV—
    Gross margin drivers16.1%% of net merchandise sales
    Fuel gas station economics—
    Warehouse store club count56clubs
    Comparable same store sales7.6%%
    E commerce digital sales growth23.4%%
    Advertising retail media revenue—
    Private label own brand penetration26.6%% of total merchandise sales
    Category level comps and inflation deflation—

    Capital programs

    15
    La Romana Warehouse Clubnearing completion

    Benefit: sixth warehouse club in the Dominican Republic

    New club opening in La Romana municipality, incorporating sustainable design practices (solar panels, CO2 refrigeration, energy management) to reduce operating costs.

    Montego Bay Warehouse Club, Jamaicaunder construction

    Benefit: new club in Jamaica

    Construction progressing well, expected to open in summer 2026.

    South Camp Road Warehouse Club, Kingston, Jamaicaunder construction

    Benefit: new club in Jamaica

    Construction progressing well, expected to open in winter 2026.

    Ciudad Quesada Warehouse Club, Costa Ricaunderway
    Start: Q2 FY26

    Benefit: tenth warehouse club in Costa Rica, 6-acre property

    Land purchased in Q2 FY26 for a new club approximately 47 miles northwest of San Jose.

    Villa Nueva Warehouse Club, Guatemalaunderway
    Start: Q3 FY26

    Benefit: eighth warehouse club in Guatemala, 5-acre property

    Land leased in Q3 FY26 for a new club approximately 13 miles south of Guatemala City. Initial earthworks begun, pending remaining permits.

    Portmore, Jamaica Warehouse Club Expansion and Remodelunderway
    Start: FY26

    Warehouse club and parking lot expansion and remodel to begin in fiscal year 2026.

    Barbados Warehouse Club Expansion and Remodelunderway
    Start: FY26

    Warehouse club and parking lot expansion and remodel to begin in fiscal year 2026.

    Trinidad Distribution Centercompleted

    Benefit: new distribution center

    Began operations during the second quarter.

    Colombia Distribution Centerunderway

    Benefit: new distribution center

    Planned to open during fiscal year 2026.

    Jamaica Distribution Centerunderway

    Benefit: new distribution center

    Planned to open during fiscal year 2026.

    Dominican Republic Distribution Centerplanned

    Benefit: new distribution center

    Planned to open during fiscal year 2027.

    Relax Forecasting and Replenishment Platformunderway

    Benefit: improved forecasting, product availability, operational efficiency

    On track to complete full implementation in fiscal year 2026. U.S.-sourced inventory procurement process onboarded, now focusing on local goods.

    E2open Global Trade Management Platformunderway

    Benefit: enhanced automation, compliance, controls across global import/export operations, improved data visibility, scalable international growth

    Advanced multiphase implementation during Q2 FY26.

    ELERA Point-of-Sale Systemunderway
    Start: Q1 FY26

    Benefit: faster checkout times, improved productivity, expanded payment options

    Completed implementation across all English-speaking Caribbean markets in Q1. Testing in Central America and rolling out to Spanish-speaking markets.

    Workday Human Capital Management Systemunderway

    Benefit: enhanced employee experience, improved processes, strengthened compliance, scalable integrated data layer

    Furthered implementation in Q2, expected to go live by end of Q3 FY26.

    Risks & headwinds

    7
    Currency volatilityQ2 FY26

    significant appreciation of the Costa Rica colon in February led to $8.7 million net loss in total other expense

    Mitigation: actively exploring options to expand our hedging program in select markets

    Evolving trade policy and tariffsongoing

    U.S. import tariffs do not apply to most of our merchandise

    Mitigation: consolidate international products through Miami DC (shipped in bond), leverage free trade agreements, ship direct to market using expanding DC network and China consolidation capabilities

    Military conflict with Iran and Strait of Hormuz situationongoing

    potential impacts to transportation costs or delays in shipment/delivery; simulations run indicate 'smaller impacts in terms of financials, but nothing really material'

    Mitigation: monitoring, ensuring resilient supply chain, diversifying product procurement

    Increased fuel pricesongoing

    significant component of transportation cost

    Mitigation: monitoring, ensuring continued value to members; no major supply chain disruptions yet

    Reduced consumer demand due to increased fuel pricesongoing

    may reduce consumer demand impacting frequency and purchasing power

    Mitigation: monitoring, ensuring continued value to members

    Vendor/raw material supplier disruptionsongoing

    adversely impacted ability to source product

    Mitigation: building a more resilient and diverse supply chain

    Potential deceleration in remittances2026

    central banks projecting deceleration for 2026

    Mitigation: member profile less reliant on remittances, continuously driving down supply chain costs to offer better value, monitoring closely

    What to watch in Q3 FY26

    5

    Workday HCM System Go-Live

    end of Q3 FY26
    CurrentImplementation advanced in Q2
    TargetGo live by end of Q3 FY26

    Why it matters

    Successful implementation is expected to enhance employee experience, improve processes, strengthen compliance, and provide scalable data for future growth.

    Also in the second quarter, we furthered implementation of Workday's human capital management system to replace legacy HR applications and expect to go live by end of the third quarter.

    Q&A highlights

    5

    Is the Chile entry taking longer than expected due to permits/construction, given media reports?

    Management stated that the process is not taking longer than other markets and is clearer institutionally. They are conservative in announcing openings until permits are in hand. Media in Chile is very active and often publishes unvalidated information.

    “We haven't seen that things are taking any longer necessarily than any other market. The process actually compared to some of our other markets is better in the sense that it's much more clear, in terms of the quality of the institutions and the steps that you have to go through to get permits.”

    asked by Jon Braatz · answered by David Price

    2 min read7 chapters

    Detailed Narrative

    01

    Strong Q2 Performance and Membership Engagement

    PriceSmart reported robust second-quarter results with net merchandise sales reaching almost $1.5 billion, up 9.9% (7.8% constant currency). Comparable net merchandise sales grew 7.6% (5.5% constant currency). The company achieved an all-time high 12-month membership renewal rate of 90.2% and saw its Platinum membership base expand to 19.5% of total accounts, reflecting strong member value perception and loyalty.

    02

    Strategic Expansion and Real Estate Development

    The company is actively expanding its physical footprint, with a sixth club opening in La Romana, Dominican Republic, early next month. Two clubs are under construction in Jamaica (Montego Bay and Kingston, expected Summer and Winter 2026 openings). Land was purchased for a tenth club in Costa Rica (Ciudad Quesada, anticipated Summer 2026 opening) and leased for an eighth club in Guatemala (Villa Nueva, anticipated Spring 2027 opening). These additions will bring the total club count to 61.

    03

    Chile Market Entry Progress

    PriceSmart continues to prioritize its entry into Chile, having signed executory agreements for two prospective club sites and actively pursuing more. The company has hired a country General Manager and local team, established a central office, and is building procurement and logistical infrastructure. Management noted the Chilean market's sophistication in consumer behavior and supply chain, expressing confidence in their value proposition.

    04

    Supply Chain and Technology Transformation

    Significant investments are underway to enhance supply chain efficiency and technological capabilities. New distribution centers are opening in Trinidad (already operational), Colombia, Jamaica (FY26), and Dominican Republic (FY27). The company completed implementing third-party distribution centers in China for consolidation and is on track to complete the Relax forecasting and replenishment platform implementation in FY26. E2open global trade management platform is also being implemented for automation and compliance.

    05

    Omnichannel Growth and Digital Enhancements

    Digital channel sales reached a record $94.1 million, growing 23.4% year-over-year and representing 6.4% of total net merchandise sales. Over 74% of members have online profiles, and more than one in four have made a digital purchase. The company is migrating its mobile application to native architectures for improved speed and reliability and rolling out a new ELERA point-of-sale system across markets, which is showing faster checkout times and expanded payment options.

    06

    Private Label and Value Proposition

    Private label penetration increased 50 basis points in the first half of FY26, reaching 26.6% of total merchandise sales. This strategy aims to offer high-quality products at lower prices, improve margins, and provide leverage with national brand suppliers. Recent price reductions on key commodities like olive oil (31.5%), frozen french fries (8.9%), and mozzarella cheese (5.8%) demonstrate the company's ability to pass savings to members.

    07

    Tariff and Geopolitical Impact Assessment

    Management clarified that U.S. import tariffs generally do not apply to most of their merchandise due to consolidation through Miami and free trade agreements, thus no refund is expected from the recent Supreme Court ruling. The company is monitoring the military conflict with Iran for potential impacts on transportation costs or supply chain disruption🌐s, though no major disruptions have occurred to date.

    AI-generated summary of the company’s earnings call. Not investment advice.