Net merchandise sales increased 1.3% after a negative currency impact of 3.1%
Comparable merchandise net sales increased 2.8% after a negative currency impact of 3.0%
E-commerce penetration was 3.2% of total net merchandise sales
PriceSmart Pharmacy launched in Costa Rica
SAN DIEGO, March 5, 2021 / PRNewswire / – PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of February 2021, net merchandise sales rose 1.3% for $ 258.7 million from $ 255.5 million in February a year earlier. Fluctuations in exchange rates negatively impacted net merchandise sales by 3.1%, or $ 7.8 million, compared to the same one month period the previous year. There were 47 warehouse clubs in operation at the end of February 2021 and 45 warehouse clubs in operation at the end of February 2020.
For the past five weeks February 28, 2021, comparable merchandise net sales for the 45 warehouse clubs open at least 13 and a half full months were up 2.8% from the same period last year. Fluctuations in exchange rates negatively impacted comparable merchandise net sales by 3.0%, or $ 9.3 million, compared to the same period of the previous year.
Sherry S. Bahrambeygui, CEO, said:
âIn February, net merchandise sales and net sales of comparable merchandise increased despite pandemic-related restrictions in some markets and one less selling day in February of this year compared to last year, which was a leap year. Sales for the month were affected by our decision to temporarily reduce the levels of merchandise we import into Trinity due to continued limitations in our ability to convert local currency to US dollars. Our global team of approximately 10,000 associates has continued to focus on sourcing exciting, distinctive and carefully selected merchandise that we can affordably value to our members in a safe and clean manner and environment. Our Click & Go â¢ service, including curbside pickup and delivery, contributed approximately 3.2% of total net merchandise sales for the month, and our delivery option continued to grow as a portion. of total Click & Go â¢ sales. During the month of February, we launched our first PriceSmart pharmacy in Costa Rica. We believe this additional membership benefit will be well received in this primary market. “
Cumulative fiscal year, which includes the six months ended February 28, 2021, net merchandise sales increased 5.2% for $ 1,736.8 million from $ 1,650.5 million for the six months ended February 29, 2020. Fluctuations in exchange rates had a negative impact on net merchandise sales of 3.4% or $ 54.7 million compared to the same six-month period the previous year.
For the period of twenty-six weeks ended February 28, 2021, comparable merchandise net sales increased 2.3% compared to the same twenty-six week period a year ago. Fluctuations in exchange rates had a negative impact on net sales of comparable merchandise by 3.3% or $ 53.2 million compared to the same period of the previous year.
Details of the announcement of the results for the second quarter of 2021:
PriceSmart expects to release fiscal 2021 second quarter financial results on Thursday, April 8, 2021, after the market closes. PriceSmart management will organize a conference call at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to Friday, April 9, 2021, to discuss the financial results. Those interested in participating in the conference call can do so by dialing toll-free (855) 209-8211 or (412) 317-5214 for international callers and requesting to join the call PriceSmart, Inc .. A digital replay will be available via April 16, 2021, at the end of the call by dialing (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering the replay access code 10152415.
PriceSmart, headquartered at San Diego, owns and operates American-style commercial warehouse clubs in Latin America and the Caribbean, selling high quality goods and services at low prices to PriceSmart members. PriceSmart operates 47 warehouse clubs in 12 countries and one American territory (eight in Costa Rica and Colombia; seven in Panama; five in the Dominican Republic, four in Trinity and Guatemala; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the US Virgin Islands). The Company also plans to open new warehouse clubs in Guatemala City, Guatemala and Bucaramanga, Colombia in the fall of 2021, and in Portmore, Jamaica in spring 2022. Once these three new clubs are open, the Company will operate 50 warehouse clubs.
The company reports net sales of comparable merchandise on a “same week” basis, with 13 weeks in each quarter starting on a Monday and ending on a Sunday. Periods are set at the start of the fiscal year to provide as close a match as possible to the calendar month and quarter which are used for financial reporting purposes. This approach equalizes the number of weekend days and weekdays in each period for a better sales comparison, as the company has higher merchandise club sales on weekends. Each of the warehouse clubs used in the calculations have been open for at least 13 and a half calendar months before their results for the current period are compared with their results for the previous period.
The term “exchange rate” refers to the exchange rates the Company uses to convert net sales of merchandise and net sales of comparable merchandise for all countries where the functional currency is not the US dollar into US dollars. The Company calculates the effect of changes in exchange rates as the difference between current period operations converted using current period exchange rates and comparable period last year exchange rates. The Company believes that disclosure of the effects of currency fluctuations on the Company’s results provides investors with a better understanding of the underlying performance of the Company.
This press release may contain forward-looking statements regarding the anticipated future income and profits of the Company, the adequacy of future cash flows, omnichannel initiatives, proposals to open warehouse clubs, the performance of the Company in relation to to its competitors, the outcome of tax proceedings and related matters. These forward-looking statements include, without limitation, statements containing the words “expect”, “believe”, “will”, “could”, “should”, “plan”, “estimate”, “anticipate” , “Programmed”, and similar expressions, and the negative thereof. These statements are subject to risks and uncertainties which could cause actual results to differ materially, including, but not limited to: adverse changes in economic conditions in the Company’s markets, natural disasters, compliance risks, exchange rate volatility, competition, consumption and small business spending habits, political instability, increased costs associated with integrating online commerce with our traditional businesses, if the Company can perform with success of strategic initiatives, cybersecurity breaches that could disrupt our systems or compromise the security of member or company information, cost increases in product and service providers, disruption of supply chains, factors and challenges related to COVID-19, including, among others, the duration of the pandemic, the long-term economic impact unknown, the impact of government policies and restrictions that have limited access for our members, and shifts in demand away from discretionary or higher priced products to lower priced products, exposure to claims of product liability and product recalls, collectability of amounts owed to PriceSmart by governments, and other important factors discussed in the Risk Factors section of the Company’s most recent annual report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are available on the SEC’s website at www.sec.gov, including quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements speak only as of the date on which they are made and the Company does not undertake to update them, except as required by law.
For more information, please contact Michael L. McCleary, EVP, Chief Financial Officer and Principal Accounting Officer (858) 404-8826 or send an email to [email protected]
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SOURCE PriceSmart, Inc.