PriceSmart Announces March Net Merchandise Sales

SAN DIEGO, April 9, 2021 /PRNewswire/ — PriceSmart, Inc. (NASDAQ: PSMT) today announced that despite the COVID-induced surge in buying March 2020our net merchandise sales increased by 0.5% to reach $307.6 million from $306.1 million in March a year earlier. Exchange rate fluctuations had a negative impact of 1.5% on net merchandise sales, i.e. $4.4 million, compared to the same one-month period the previous year. There were 47 warehouse clubs in operation at the end of March 2021 and 45 warehouse clubs in operation at the end March 2020.

For the four weeks ended March 28, 2021, comparable merchandise net sales for the 45 warehouse clubs open at least 13.5 full months decreased 5.9% from the same period last year. Exchange rate fluctuations had a negative impact of 1.4% on comparable merchandise net sales, or $4.1 millioncompared to the same period of the previous year.

Sherry S. BahrambeyguiCEO, said:

“March marks the one-year anniversary of when we began to feel the impact of the COVID-19 pandemic. Comparable merchandise net sales for March were down 5.9% from the same period last year. , where they had risen 15.7% due to member inventory before the uncertainty surrounding the global pandemic.The pandemic began to affect our sales in April and May 2020, the last two months of the third fiscal quarter. During the third quarter of last year, many of our clubs experienced severe traffic restrictions, some of our services such as tires, optical and catering grounds were closed to members, and we lost approximately 225 total club days due to club closures. Our global team of approximately 10,000 associates continued to focus on sourcing exciting, distinctive and carefully selected merchandise and services that we offer our members at great value in a safe and clean environment. Our Click & Go™ service, including curbside pickup and delivery, contributed approximately 3.0% of total net merchandise sales for the month. »

Fiscal year to date, which includes the seven months ended March 31, 2021net merchandise sales increased 4.5% to $2,044.4 million from $1,956.5 million for the seven months ended March 31, 2020. Exchange rate fluctuations had a negative impact on net merchandise sales of 3.0% or $59.1 million compared to the same seven-month period the previous year.

For the thirty week period ended March 28, 2021, comparable merchandise net sales increased 1.1% from the same 30-week period a year ago. Exchange rate fluctuations had a negative impact of 3.0% on net sales of comparable merchandise or $57.3 million compared to the same period of the previous year.

About PriceSmart

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.

Lost Club Days means the total number of days that one or more clubs are closed for an entire day due to government bans on offering in-store purchases. For example, if one club was banned from offering in-store sales for five days in one month and another club was banned from offering in-store sales for two days in that month, we would say we lost seven club days during the month.

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 ‘, ‘planned’, ‘intend’ and similar expressions, as well as their negative forms. These statements are subject to risks and uncertainties that 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 and illiquidity of certain local currencies in our markets, competition, consumer and small business spending habits, political instability, increased costs associated with integration of e-commerce into our traditional business, the Company’s ability to successfully execute strategic initiatives, cybersecurity vulnerabilities that could disrupt our systems or compromise the security of member or business information, increases in the cost of suppliers of products and services, disruption of supply chains, factors and t challenges related to COVID-19, 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 easy access for our members, and a shift in demand from discretionary or higher-priced products to lower-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 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 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].

SOURCEPriceSmart, Inc.

Related links

http://www.pricesmart.com