10-Q · July 8, 2026
PriceSmart reported a strong third quarter, with revenue reaching $1.5 billion, up approximately 8.9% year-over-year. Diluted EPS improved to $1.62, reflecting a robust financial performance. Management highlighted…
Earnings analysis · 10-K
PSMT earnings analysis
Filed October 26, 2026 · Our reading of the company's report
The latest report
PriceSmart delivered a strong fiscal 2026, with revenue up 11.5%, diluted EPS up 12.0% to $5.40, membership income up 17.8%, and operating cash flow of $307.7 million. Growth was broad-based, led by Colombia and…
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PriceSmart delivered a strong fiscal 2026, with revenue up 11.5%, diluted EPS up 12.0% to $5.40, membership income up 17.8%, and operating cash flow of $307.7 million. Growth was broad-based, led by Colombia and supported by higher transactions, membership penetration, renewal rates and new-club openings, although Colombia's reported growth benefited substantially from currency appreciation. The outlook is strategically positive, with plans to expand from 58 to 63 clubs and enter Chile, but tariff uncertainty, foreign-currency liquidity, geopolitical shipping disruption and elevated expansion spending temper the risk-reward profile.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.4
What stood out
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Double-Digit Revenue and EPS Growth
Fiscal 2026 revenue increased 11.5% to $5.876 billion, while net income rose 12.7% to $166.6 million and diluted EPS increased to $5.40 from $4.82. Operating income increased 12.3% to $261.0 million.
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Gross Margin Expanded Despite Investment
Profitability improved modestly: merchandise gross margin increased to 16.0% from 15.7%, while operating margin held at 4.4%. Total revenue margin increased to 17.7% from 17.4%, despite SG&A rising to 13.2% of revenue from 12.9%.
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Membership Economics Strengthened
Membership income increased 17.8% to $100.8 million, membership accounts rose 8.7% to 2.185 million, and the trailing twelve-month renewal rate improved to 90.4% from 88.8%. Platinum accounts increased to 23.4% of the membership base from 17.9%.
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Colombia Led Geographic Growth
Colombia was the fastest-growing region, with net merchandise sales up 34.5% to $813.9 million and comparable sales up 35.0%. However, currency appreciation contributed $113.1 million, or 18.7 percentage points, of Colombia's reported sales growth.
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Expansion Pipeline Supports Growth
The company operated 58 clubs at year-end versus 56 a year earlier and plans four additional openings in Jamaica, Guatemala, Costa Rica and Chile. Once these openings are complete, management expects to operate 63 clubs.
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Cash Generation Funded Expansion
Operating cash flow increased to $307.7 million from $261.3 million. Capital expenditures rose sharply to $211.3 million, including $143.8 million of growth spending versus $76.0 million in fiscal 2025, supporting new locations and real-estate expansion.
What to watch
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Uncertain Tariff Regime
The filing identifies a materially expanded tariff risk following the February 2026 Supreme Court decision and subsequent Section 301 actions, including new duties of 10%–12.5% on goods from about 80 countries. Management states that tariffs could require price increases or cause merchandise shortages, pressuring sales and profitability.
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Middle East Supply-Chain Disruption
The filing adds exposure to geopolitical disruption involving Iran and the Strait of Hormuz, where maritime traffic has at times fallen by nearly 95% versus pre-crisis levels. Sustained disruption could increase fuel, freight and logistics costs and delay merchandise deliveries.
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Currency and Dollar Liquidity Risk
Foreign-exchange and dollar-liquidity exposure remains material: approximately 81.2% of net merchandise sales are in non-U.S. currencies, and Trinidad dollar-denominated cash and investments totaled $53.8 million at August 31, 2026. Currency-conversion transaction costs increased to $18.1 million from $14.9 million, contributing to $29.7 million of other expense.
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Heavy Expansion Capital Needs
Growth investment is increasing faster than maintenance spending: total capital expenditures rose 33.6% to $211.3 million, while growth capex increased to $143.8 million from $76.0 million. The company also had $29.3 million of construction obligations not yet rendered and expects approximately $12.1 million to outfit the relocated Guatemala club and $16.3 million to outfit the Chile club.
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Technology Investment May Pressure Margins
SG&A increased $95.6 million, or 14.0%, and reached 13.2% of revenue versus 12.9% in fiscal 2025, primarily due to technology and executive-compensation investments. Management expects technology-investment expenses to increase in subsequent periods, creating execution and margin risk.
Management's outlook
No quantitative annual revenue or EPS guidance is provided in the 10-K. Management describes planned expansion to 63 clubs after four additional openings, including the first Chile club, but defers specific outlook metrics.
Earlier filings 2
10-Q · April 8, 2026
PriceSmart reported a solid quarter: revenues rose to $1,495,528,000 (up $131,642,000 or ~9.7% YoY) and diluted EPS was $1.62 (up $0.17 or ~11.7% YoY). Gross margin and operating margin both improved (gross ~17.7% and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.