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 for 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% of the base 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.

• Digital/omni-channel sales reached $89.8 million, up 29.4% year-over-year, representing 6.6% of total net merchandise sales.

• Operated 56 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

• Gross margin as a percentage of net merchandise sales remained at 15.9% year-over-year.

• Operating income rose 8% to $62.9 million.

• SG&A expenses increased to 13.1% of total revenues, up from 12.8% last year, mainly due to tech investments and CEO compensation.

• Adjusted EBITDA margin for the quarter was approximately 6.3%.

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

Outlook and guidance

• Four new warehouse clubs are expected to open in FY2026, including entry into Chile and additional locations in Costa Rica, Jamaica, and the Dominican Republic, bringing the total to 60.

• 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 growth decelerated from Q1 due to transitory factors.

• Colombia continues to show strong momentum, and positive trends are seen across most markets entering 2026.

• No anticipated delays in new club openings despite recent operational disruptions in Jamaica.