PriceSmart (PSMT) Tops Q3 EPS by 15c, Revenues Beat

July 9, 2020 4:02 PM EDT

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PriceSmart (NASDAQ: PSMT) reported Q3 EPS of $0.41, $0.15 better than the analyst estimate of $0.26. Revenue for the quarter came in at $799.93 million versus the consensus estimate of $693.45 million.

Comments from Sherry S. Bahrambeygui, Chief Executive Officer:

"During the third quarter of fiscal year 2020, our Company has traversed an extraordinary arc that started with responding to unexpected challenges and quickly evolved to strengthening our business for the future.

With our top priority firmly placed on the well-being of our employees and Members, the quarter began with the rapid adaptation to remote-work without compromising effectiveness. We immediately focused on precautionary and safety measures for our front-line employees in-country and in our distribution centers internationally. Our Company then led the way in best practices in-country to strive to keep our members and the public safe. We focused on collaborating with our vendors and suppliers to protect the supply chain and maximize availability of essential goods needed by our Members. We reformed how our Leadership Team oversees and directs all aspects of the Company. We engaged in collaborative and constant communication enabling us to move immediately into a forward-looking and expedited development of our online presence and communication with our Members. As a result, we launched our Click & Go™ program, which enables online orders with curbside pick-up and minimal contact, to meet the immediate demands of our Members. As we experienced our Members' rapid adoption of this shopping channel, we accelerated our roll-out of the service throughout our Company. We ended June with 2.7% penetration of net merchandise sales. We now provide Click & Go™ contactless shopping, online visibility of inventory, online payment platforms, and the ability to sign up and renew memberships online in every one of our markets and all but one of our 46 clubs. We believe the technology, business infrastructure, processes, and platforms that support the Click & Go™ program strengthens our foundation for growth.

At the beginning of the third quarter, we carefully considered the risks of the unknown and preserved cash and suspended certain capital expenditures and discretionary spending. Within a relatively short time, we restarted multiple capital projects and proceeded with the opening on June 17, 2020 of our 46th Club in Liberia, Costa Rica which was adeptly handled by the tremendous in-country team and with the close, but remote involvement of the Leadership Team internationally. As previously announced, we also look forward to the opening of our 47th club in the second quarter of fiscal year 2021, which will be located in the metropolitan area of Bogota, Colombia.

The COVID-19 pandemic, which has been described as the "great accelerator" for the retail industry, has tested all of us on many dimensions. This is a unique time when issues related to health, social equity, economics and fundamental ways of doing business on a global scale are requiring our best efforts. I am so very proud of how our team has taken this opportunity to embrace these challenges and excel by being nimble, learning more effective practices and remaining vigilant about protecting our core values. I send you my warmest wishes for health and well-being and look forward as we all navigate this ongoing environment to emerge stronger than ever."

For earnings history and earnings-related data on PriceSmart (PSMT) click here.

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