PriceSmart (PSMT) Reports July Merchandise Sales

PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of July 2019, net merchandise sales increased 2.8% to $255.8 million from $248.9 million in July a year earlier. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $6.4 million or 2.5% versus the same prior year one-month period.

For the eleven months ended July 31, 2019, net merchandise sales increased 0.9% to $2,831.4 million from $2,805.0 million in the same period last year. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $91.1 million or 3.2% versus the same prior year eleven-month period.

There were 43 warehouse clubs in operation at July 31, 2019 compared to 41 warehouse clubs in operation at July 31, 2018.

For the four weeks ended July 28, 2019, comparable warehouse sales for the 41 warehouse clubs open at least 13 ½ full months increased 1.6% compared to the same four-week period last year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $5.8 million or 2.6% versus the same prior year period.

For the forty-seven week period ended July 28, 2019, comparable warehouse sales decreased 0.8% compared to the comparable forty-seven week period a year ago. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $88.7 million or 3.2% versus the same prior year period.

The Company reports comparable net merchandise sales on a "same week" basis with 13 weeks in each quarter beginning on a Monday and ending on a Sunday. The periods are established at the beginning of the fiscal year to provide as close a match as possible to the calendar month and quarter that is used for financial reporting purposes. This approach equalizes the number of weekend days and weekdays in each period for improved sales comparison, as we experience higher merchandise club sales on the weekends. Each of the warehouse clubs used in the calculations was open for at least 13 ½ calendar months before its results for the current period were compared with its results for the prior period.

The term "currency exchange rates" refers to the currency exchange rates we use to convert net merchandise and comparable net merchandise sales for all countries where the functional currency is not the U.S. dollar into U.S. dollars. The effect of changes in currency exchange rates are calculated as the difference between current period activities translated using the current period's currency exchange rates, and the comparable prior year period's currency exchange rates. The disclosure of the effects of currency exchange rate fluctuations on the Company's results permits investors to understand better our underlying performance.

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