PriceSmart announces three new club openings and reports a 21.6% rise in e-commerce sales as it expands digitally.
Management Overview: CEO David Price and CFO Gualberto Hernandez highlighted their positive outlook and strategic initiatives, including a new corporate headquarters in San Diego and expansion plans for warehouse clubs in Guatemala, Jamaica, and the Dominican Republic.
Financial Performance: PriceSmart reported over $1.3 billion in net merchandise sales for Q4 2025, with a 9.2% increase year-over-year, and total revenues nearing $5.3 billion for the fiscal year, reflecting a 7.7% growth.
Digital and Membership Growth: Digital sales surged to $306.7 million, accounting for 6% of total sales, while private label penetration rose to 28.1% and platinum membership increased to 17.9%, indicating strong customer engagement.
Future Outlook: The company plans to open three new clubs in fiscal 2026 and continue investing in technology and supply chain improvements, with management expressing optimism about future growth despite potential risks from external factors.
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- New Investment Position: Black Creek Investment Management established a new position in Eagle Materials by acquiring 502,120 shares in Q4 2025, with an estimated trade value of $103.78 million, indicating confidence in the construction materials sector amid a potential infrastructure spending rebound.
- Asset Allocation Significance: This new position accounts for 5.1% of Black Creek's reportable assets in its 13F filing, ranking among its top five holdings, which underscores the firm's strategic focus on this stock.
- Strong Financial Performance: Eagle Materials reported $556 million in quarterly revenue and $3.22 in diluted EPS for its latest fiscal quarter, with cement volumes rising 9% year-over-year, demonstrating resilience despite softness in the residential market.
- Share Buyback Strategy: The company repurchased approximately 648,000 shares for $142.6 million in the quarter, reinforcing consistent capital allocation and reflecting management's confidence in future growth prospects.
- Dividend Increase: PriceSmart has declared a semi-annual dividend of $0.70 per share, marking an 11.1% increase from the previous $0.63, reflecting the company's ongoing profitability and likely attracting more investor interest.
- Yield Metrics: The forward yield of 0.93% provides shareholders with a stable return, enhancing the company's appeal in the market, particularly in the current economic climate where reliable income is valued.
- Payment Schedule: The dividend is payable on February 27, with a record date of February 17 and an ex-dividend date also on February 17, ensuring shareholders receive their earnings promptly, which boosts investor confidence.
- Growth Outlook: PriceSmart is planning to expand in Colombia and build four new warehouse clubs in Costa Rica, indicating strong growth potential and strategic positioning in the Latin American market, which is expected to further drive stock price appreciation.
- Annual Dividend Increase: On February 5, 2026, PriceSmart announced an increase in its annual cash dividend to $1.40 per share, reflecting an 11.1% rise from last year's $1.26, which demonstrates the Board's confidence in the company's cash-generating capabilities and is expected to enhance investor confidence and attract more shareholders.
- Annual Meeting Results: At the 2026 annual meeting, all eleven board nominees were elected, ensuring stability and continuity in corporate governance, while shareholders also approved the advisory resolution on executive compensation for fiscal year 2025, indicating strong support for management.
- Future Expansion Plans: PriceSmart plans to open new warehouse clubs in the Dominican Republic and Jamaica in spring and fall 2026, respectively, which will increase its total to 60 clubs, further expanding market coverage and enhancing brand influence, likely driving future revenue growth.
- Auditor Selection: The annual meeting also confirmed Ernst & Young LLP as the independent auditor for fiscal year 2026, which will help enhance the company's financial transparency and compliance, thereby increasing investor trust in its financial reporting.
- EPS Downgrades: A review reveals that Sendas Distribuidora S.A. (ASAIY) received an ‘F’ EPS Revisions Grade, indicating significant downward adjustments by analysts that could undermine investor confidence.
- Poor Industry Performance: Edgewell Personal Care (EPC) and Flowers Foods (FLO) also received ‘F’ grades, reflecting structural challenges within the consumer staples sector that may lead to overall market weakness.
- Increased Market Risks: Premium Brands (PRBZF) and PriceSmart (PSMT) are similarly rated low, highlighting the vulnerability of mid to low cap consumer staples stocks in the current market environment, potentially affecting their financing and expansion capabilities.
- Investor Caution: Shiseido Company (SSDOY) and USANA Health Sciences (USNA) face EPS downgrades as well, prompting investors to remain vigilant regarding these stocks to avoid potential financial risks.
- Earnings Growth: PriceSmart's first-quarter earnings reached $40.17 million, translating to an EPS of $1.29, which marks a significant increase from last year's $37.43 million and $1.21 EPS, indicating the company's robust performance in the market.
- Revenue Increase: The company's revenue rose by 9.9% to $1.383 billion compared to $1.258 billion last year, showcasing PriceSmart's effective strategies in sales and customer attraction.
- Market Performance: The dual growth in earnings and revenue not only boosts investor confidence but may also drive the company's stock price upward, enhancing its overall market competitiveness.
- Future Outlook: With ongoing operational optimizations and market share expansions, PriceSmart is expected to further solidify its position in the retail sector, particularly in the rapidly changing consumer landscape.










