SAN DIEGO, March 5, 2021 /PRNewswire/ — PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of February 2021net merchandise sales increased 1.3% for $258.7 million from $255.5 million in February a year earlier. Exchange rate fluctuations had a negative impact of 3.1% on net merchandise sales, i.e. $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 February 2020.
For the five weeks ended February 28, 2021, comparable merchandise net sales for the 45 warehouse clubs open at least 13.5 full months increased 2.8% over the same period last year. Exchange rate fluctuations had a negative impact of 3.0% on comparable merchandise net sales, or $9.3 millioncompared to the same period of the previous year.
Sherry S. BahrambeyguiCEO, said:
“February net merchandise sales and comparable merchandise net sales increased despite pandemic-related restrictions in some markets and one less selling day in February this year compared to last year, which was a leap year Sales for the month were impacted by our decision to temporarily reduce the levels of goods we import into Trinity due to continued limitations in our ability to convert local currency into US dollars. Our global team of approximately 10,000 associates continued to focus on sourcing exciting, distinctive and carefully selected merchandise that we can deliver at great value to our members in a safe and clean manner and environment. Our Click & Go™ 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 share. of total Click & Go™ sales. During the month of February, we launched our first PriceSmart Pharmacy in Costa Rica. We believe this additional member benefit will be well received in this first market.”
Fiscal year to date, which includes the six months ended February 28, 2021net merchandise sales increased 5.2% to $1,736.8 million from $1,650.5 million for the six months ended February 29, 2020. Exchange rate fluctuations 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 twenty-six week period ended February 28, 2021, comparable merchandise net sales increased 2.3% from the same twenty-six week period a year ago. Exchange rate fluctuations had a negative impact of 3.3% on net sales of comparable merchandise or $53.2 million compared to the same period of the previous year.
Details of the second quarter 2021 results announcement:
PriceSmart expects to release financial results for the second quarter of fiscal 2021 on Thursday, April 8, 2021, after market close. PriceSmart management will host 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 (855) 209-8211 toll-free or (412) 317-5214 for international callers and asking to join the call PriceSmart, Inc. A digital replay will be available via April 16, 2021after the call is concluded by dialing (877) 344-7529 for domestic callers or (412) 317-0088 for international callers, and entering the replay code 10152415.
PriceSmart, headquartered in San Diegoowns and operates American-style commercial warehouse clubs in Latin America and the Caribbean, selling high-quality merchandise and services at low prices to PriceSmart members. PriceSmart operates 47 warehouse clubs in 12 countries and one U.S. territory (eight in Costa Rica and Colombia; seven in Panama; five in the Dominican Republicfour in Trinity and Guatemala; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). The Company also plans to open new warehouse clubs in Guatemala, Guatemala and Bucaramanga, Colombia in the fall of 2021, and in Portmore, Jamaica in the spring of 2022. Once these three new clubs open, the Company will operate 50 warehouse clubs.
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. Periods are established at the beginning of the year to correspond as closely as possible to the calendar month and quarter used for financial reporting purposes. This approach equalizes the number of weekend days and weekdays in each period for better sales comparison, as the company experiences higher merchandise club sales on weekends. Each of the warehouse clubs used in the calculations has been open for at least 13.5 calendar months before its results for the current period are compared to its results for the prior period.
The term “exchange rates” means the exchange rates the Company uses to convert net merchandise sales and comparable net merchandise sales into US dollars for all countries where the functional currency is not the US dollar. The Company calculates the effect of changes in foreign exchange rates as the difference between current period operations translated using current period foreign exchange rates and the comparable period foreign exchange rates of the prior year. The Company believes that disclosing the effects of exchange rate fluctuations on the Company’s results provides investors with a better understanding of the Company’s underlying performance.
This press release may contain forward-looking statements regarding the Company’s expected future revenues and earnings, future cash flow adequacy, omnichannel initiatives, proposed warehouse club openings, the Company’s performance relative to competitors. , the outcome of tax proceedings and related matters. These forward-looking statements include, but are not limited to, statements containing the words “expect”, “believe”, “will”, “may”, “should”, “project”, “estimate”, “anticipate “, “programmed” and similar expressions, as well as their negative. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to: changes adverse economic conditions in the Company’s markets, natural disasters, compliance risks, currency exchange rate volatility, competition, consumer and small business spending patterns, political instability, increased costs associated with integrating e-commerce into our traditional business, the company’s ability to successfully execute strategic initiatives, cybersecurity vulnerabilities that could disrupt our systems es or compromise the security of member or company information, cost increases to product and service providers, disruption of supply chains, COVID-19 related factors and challenges, including but not limited to the duration of the pandemic, the unknown long-term economic impact, the impact of government policies and restrictions that have limited access for our members, and demand shifts away from d discretionary or higher priced products to low-priced products, exposure to product liability claims and product recalls, the ability to collect amounts owed to PriceSmart by governments, and other important factors discussed in the Risk Factors section of the last company’s annual report on Form 10-K, and other factors discussed from time to time in other SEC filings, which are available on the SE’s website C 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 they are made and the Company does not undertake to update them except as required by law.
For more information, please contact Michael L. McClearyEVP, Chief Financial Officer and Principal Accounting Officer (858) 404-8826 or email [email protected].