PSMT - PriceSmart stock pops on profit beat

2023-04-10 16:19:41 ET

PriceSmart ( NASDAQ: PSMT ) stock rose sharply in Monday’s extended session after topping earnings expectations for its fiscal second quarter.

The San Diego-based wholesale club notched $1.25 in earnings per share for Q2, coming in $0.13 above expectations. Meanwhile, a 9.6% jump in revenue to $1.14B also narrowly exceeded the Street consensus , while comparable sales rose 8.5%.

“Our financial results for the second quarter and first six months of fiscal 2023 have been highlighted by solid sales and earnings growth, improved inventory turns, and a strong balance sheet,” CEO Robert E. Price commented. “Our focus continues to be on the basics: inventory flow, in stock position, new products, expenses, sales on PriceSmart.com, improvements to our warehouse club locations, identifying opportunities for new locations, and investing in efficiencies driven by improved processes and technology.”

He highlighted investments in technology as well as the company’s expansion into El Salvador as key points of emphasis in Q2. Merchandise inventories declined to $449.1M from $464.4M in Q2 2022.

Shares of PriceSmart ( PSMT ) pushed 4.3% shortly after the print .

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