PriceSmart Reports 10.6% Net Merchandise Sales Growth in Q1 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
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Should l Buy PSMT?
Source: Yahoo Finance
- Significant Sales Growth: PriceSmart's net merchandise sales increased by 10.6% in Q1 2026, reaching $1.35 billion, indicating strong market demand in Latin America and the Caribbean.
- Revenue Increase: Total revenues rose by 9.9% year-over-year to $1.38 billion in the first quarter, reflecting the company's success in expanding market share and enhancing its customer base.
- Improved Profitability: Operating income increased from $58.3 million to $62.9 million, with net income rising 7.3% to $40.2 million, demonstrating improvements in cost control and operational efficiency.
- Expansion Plans: The company plans to open its tenth warehouse club in Costa Rica in fall 2026, further strengthening its presence in Central America and expected to drive future revenue growth.
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Analyst Views on PSMT
Wall Street analysts forecast PSMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSMT is 134.50 USD with a low forecast of 134.00 USD and a high forecast of 135.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 151.300
Low
134.00
Averages
134.50
High
135.00
Current: 151.300
Low
134.00
Averages
134.50
High
135.00

No data
About PSMT
PriceSmart, Inc. owns and operates United States-style membership shopping warehouse clubs in Latin America and the Caribbean, selling merchandise and services. The Company operates 55 warehouse clubs in 12 countries and one United States territory (10 in Colombia; nine in Costa Rica; seven in Panama; six in Guatemala; five in the Dominican Republic; four each in Trinidad and El Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). Its products include groceries, home, liquor, beer and wine, health and beauty, babies, pets, electronics, hardware and home improvement, the outdoors, small appliances, jewelry and watches and furniture. Its groceries include dairy and eggs, oils, baking and condiments, and beverages. Its home includes cleaning supplies, household paper products, laundry supplies, and home decor. Its health and beauty include skin care, oral care, hair care, and personal grooming.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- 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.
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- 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.
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- 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.
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- 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.
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- Significant Sales Growth: PriceSmart's net merchandise sales reached $1.35 billion in Q1, reflecting a 10.6% year-over-year increase, indicating strong market demand in Latin America and the Caribbean, which further solidifies its market position.
- Revenue Increase: Total revenues rose by 9.9% to $1.38 billion compared to $1.26 billion in the same period last year, showcasing the company's ongoing expansion in the membership warehouse business and an expanding customer base.
- Enhanced Profitability: The company reported a 7.3% increase in net income to $40.2 million, with diluted earnings per share at $1.29, demonstrating positive progress in cost control and operational efficiency improvements.
- New Club Plans: PriceSmart plans to open its tenth warehouse club in Costa Rica, anticipated to launch in fall 2026, which will increase its total number of clubs to 60, further enhancing its competitive edge in the Central American market.
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