PriceSmart (PSMT) Q1 2026 earnings summary

Executive summary

• Net merchandise sales grew 10.6% year-over-year to $1.35 billion, with total revenues up 9.9% to $1.38 billion in Q1 FY2026; comparable net merchandise sales increased 8.0% (6.9% in constant currency).

• Membership accounts grew 6.7% to over 2 million, with Platinum memberships rising to 19.3% and membership income up 15.9% to $23.4 million; renewal rate was 89.3%.

• Net income was $40.2 million ($1.29 per diluted share), up from $37.4 million ($1.21 per share) last year.

• Adjusted EBITDA reached $86.9 million, up from $79.1 million in the prior year.

• Operated 56 warehouse clubs at quarter-end, with four new clubs planned for FY2026, including entry into Chile and additional locations in Costa Rica, Jamaica, and the Dominican Republic.

Financial highlights

• Operating income increased 8% year-over-year to $62.9 million.

• Gross margin held steady at 15.9% of net merchandise sales; total revenue margin improved 30 bps to 17.7%.

• SG&A expenses rose to 13.1% of revenue, mainly due to tech investments and CEO compensation.

• Cash and cash equivalents (including restricted cash) totaled $249.6 million as of November 30, 2025.

• Membership income as a percentage of revenue increased to 1.7% from 1.6%.

Outlook and guidance

• Four new warehouse clubs are expected to open in FY2026, including entry into Chile and new locations in Costa Rica, Jamaica, and the Dominican Republic.

• Continued investment in technology, digital capabilities, and distribution centers to support growth.

• Holiday season comparable net merchandise sales for the nine weeks ended December 28, 2025, grew 7.1% in USD, though this was a deceleration from Q1 due to transitory factors.

• Colombia continues to show strong momentum, with positive trends expected across most markets entering 2026.