PriceSmart (PSMT 80.25, -7.75) has slid 8.8% after missing third quarter earnings expectations.
The operator of membership warehouse clubs in Central America and the Caribbean reported below-consensus third quarter earnings of $0.62 per share on a 3.7% year-over-year increase in revenue to $730.30 million, which was a bit shy of estimates.
Net warehouse club sales rose 3.8% year-over-year to $710.70 million while membership income grew 4.9% to $12.04 million. Export sales declined 8.7% to $6.48 million while other income fell 9.0% to $1.05 million.
In addition to reporting third quarter results, the company announced that net warehouse club sales in June rose 4.1% year-over-year to $230.10 million. This was ahead of the growth rate for the past ten months, which stands at 3.1%. The company had 39 operating locations at the end of June 2017, up from 38 locations one year ago. Comparable sales in June increased 1.5%, which was ahead of the 1.4% growth rate reported for the first three quarters of PriceSmart's fiscal year.
PriceSmart plans to open its fourth location in the Dominican Republic in early 2018 after acquiring land in Santo Domingo in June.
Shares of PriceSmart ended yesterday's session with a modest 2017 gain, but that has turned into a year-to-date loss of 3.5% in reaction to the third quarter report.