PSMT - Why PriceSmart Stock Jumped This Week
Week to date, shares of PriceSmart (NASDAQ: PSMT) were up 13% as of 11:11 a.m. on Friday, according to data provided by S&P Global Market Intelligence . The company reported another strong quarter on Monday, with solid sales growth and membership renewal rates at its warehouse clubs.
Inflation continued to put pressure on customer demand, but management has been successful passing these higher costs on to consumers. Sales increased by 8.6% year over year but would have risen a few more percentage points if not for a negative impact from currency translation. Comparable merchandise sales also jumped 5%.
However, earnings per share grew slower than sales, up 7.1%. While PriceSmart experienced easing supply chain disruptions and shipping costs during the quarter, input costs, including labor and packaging, continued to rise. Average selling prices were up 10.3%, which helped offset higher costs, but that also contributed to a 4.4% decrease in items per basket.
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Why PriceSmart Stock Jumped This Week