PriceSmart (NASDAQ:PSMT) reported results for the first quarter of fiscal 2026, which ended November 30, 2025, highlighting membership growth, higher sales and continued investment in new clubs, supply chain infrastructure and technology platforms.
Sales growth driven by higher traffic and a larger average ticket
Chief Executive Officer David Price said the company delivered “strong results across our key performance areas,” citing membership growth, solid sales performance and operational discipline. Net merchandise sales and total revenue reached almost $1.4 billion in the quarter. Net merchandise sales increased 10.6%, or 9.5% in constant currency, while comparable net merchandise sales rose 8%, or 6.9% in constant currency.
By region, the company posted positive comparable net merchandise sales growth across each market it discussed:
- Central America (32 clubs): net merchandise sales rose 9.6% (9.2% constant currency); comparable sales increased 5.4% (5.1% constant currency).
- Caribbean (14 clubs): net merchandise sales increased 5.7% (7.8% constant currency); comparable sales increased 5.6% (7.7% constant currency).
- Colombia (10 clubs): net merchandise sales rose 27.8% (15% constant currency); comparable sales increased 27.9% (14.7% constant currency).
On category trends, Price said foods grew about 11.3% year over year, non-foods increased about 7.2%, food service and bakery rose about 10.1%, and health services (optical, audiology and pharmacy) increased about 17.8%.
Membership base surpasses 2 million accounts as Platinum mix rises
PriceSmart ended the quarter with membership accounts up 6.7% year over year to more than 2 million. The company reported a 12-month renewal rate of 89.3% as of November 30.
Management emphasized growth in Platinum, its premium membership tier that offers an annual cashback reward on eligible purchases. Platinum represented 19.3% of total membership accounts as of quarter-end, up from 14% in the prior-year period. The company said membership income as a percentage of revenue increased to 1.7% from 1.6%, driven in part by the mix shift toward Platinum memberships.
Expansion plans: new clubs, remodels, and entry steps toward Chile
Price highlighted several real estate projects that are expected to bring the company to 60 warehouse clubs once opened.
In the Dominican Republic, PriceSmart previously purchased land for a sixth club in La Romana, which is expected to open in spring 2026. In Jamaica, the company is expanding from two clubs to four, including a purchased site in Montego Bay expected to open in fall 2026 and a finalized land lease on South Camp Road expected to open in winter 2026. Price said the Jamaica opening timelines were adjusted due to operational disruptions tied to Hurricane Melissa, though existing clubs “weathered the storm well” and resumed serving members almost immediately. He added the company does not anticipate further delays at this time.
The company also purchased land in fiscal Q2 for a tenth warehouse club in Costa Rica in Ciudad Quesada, anticipated to open in fall 2026.
On Chile, Price said the company is advancing plans to enter the market and has hired a country general manager and signed executive agreements for two prospective club sites. While no opening dates were provided, he said the company is “moving quickly” while managing factors such as permitting and construction. In response to an analyst question, Price described Chile as “very competitive” and “highly digitalized,” noting there are no “club models” like PriceSmart’s in the country, though wholesale-style competitors exist.
Beyond new clubs, the company plans warehouse club and parking lot expansion and remodel projects in fiscal 2026 in Portmore, Jamaica, and Barbados. Price said parking expansions can improve member flow and help busy locations, while sales-floor changes can support efficiency and availability.
Supply chain and technology investments, including new distribution centers
PriceSmart discussed a supply chain transformation aimed at improving product availability, reducing lead times and lowering landed costs. Price said the company adapted its Panama facility to handle cold merchandise during the quarter and began operations at a new distribution center in Guatemala. Management also plans to open distribution centers in Trinidad, Colombia and the Dominican Republic during fiscal 2026.
The company is also implementing third-party distribution centers in China to consolidate merchandise sourced there, and has introduced its own truck fleet in select countries to deliver directly to clubs and capture backhaul opportunities.
Price said the company remains on track to complete a full implementation of the RELEX forecasting and replenishment platform in fiscal 2026, and advanced a multi-phase rollout of E2open’s global trade management platform during the quarter.
On technology in clubs and back-office functions, Price said PriceSmart completed implementation of its ELERA point-of-sale system in all English-speaking Caribbean markets and expects to begin rolling it out in Spanish-speaking markets later in fiscal 2026. The company also began implementing Workday’s human capital management system to replace legacy HR applications.
Margins steady, earnings rise; digital sales reach a record share
Chief Financial Officer Gualberto Hernandez said gross margin as a percentage of net merchandise sales was unchanged at 15.9%. Total revenue margin improved 30 basis points to 17.7% of total revenue, driven mainly by membership renewals and Platinum growth.
SG&A expenses increased to 13.1% of total revenue from 12.8%, which Hernandez attributed primarily to technology investments and CEO compensation. He noted that during Robert Price’s tenure as interim CEO from February 2023 to August 2025, Robert Price declined compensation.
Operating income rose 8% to $62.9 million. Net income was $40.2 million, or $1.29 per diluted share, compared with $37.4 million, or $1.21 per diluted share, a year earlier. Adjusted EBITDA was $86.9 million versus $79.1 million in the prior-year period, a 9.8% increase.
Below operating income, Hernandez said the company recorded a $7.2 million net loss in total other expense, primarily due to foreign-currency-related losses. The effective tax rate was 27.9% versus 26.5% a year ago, reflecting non-recurring items including a tax contingency accrual and foreign exchange rate fluctuations.
On the balance sheet, PriceSmart ended the quarter with $249.6 million in cash, cash equivalents and restricted cash, plus about $114.2 million in short-term investments. Hernandez noted that as of November 30, the company had TTD 80.2 million of cash and investments denominated in Trinidad local currency that could not readily be converted into U.S. dollars.
Digital channel sales reached $89.8 million, up 29.4% year over year, representing 6.6% of net merchandise sales—its highest contribution to date, according to Price. The company said website and app orders grew 18.1%, with average transaction value up 10.1%. As of November 30, 73% of members had created an online profile and 27.1% had made a purchase online.
Looking beyond the quarter, Price shared a holiday-season update: comparable net merchandise sales for the nine-week period ended December 28, 2025, increased 7.1% in U.S. dollars and 5.4% in constant currency. He said December results were affected by “transitory factors,” including elections in Honduras, an extended rainy season in Panama that disrupted traffic and logistics, and supply timing issues that led to out-of-stocks in several high-volume food items.
Price also addressed macro topics, saying current U.S. tariff policy had not impacted the company’s cost structure or operations, and that PriceSmart had not seen changes in consumer demand tied to remittance patterns. He added the company is monitoring developments in Venezuela but did not speculate on potential implications.
About PriceSmart (NASDAQ:PSMT)
PriceSmart, Inc (NASDAQ: PSMT) is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart’s value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.
The company’s product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.
