PriceSmart (PSMT) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net merchandise sales grew 5.8% to $1.33 billion, with total revenue at $1.36 billion, and membership accounts reached over 1.9 million with an 87% renewal rate.

• Platinum membership penetration increased to 14.5%, and membership income grew 12.8% to $20.9 million in Q2.

• Net income for Q2 was $43.8 million ($1.45 per diluted share), up from $39.3 million ($1.31) last year; adjusted EBITDA was $87.0 million.

• Opened ninth Costa Rica club in Cartago, bringing total to 55 clubs, with a new Guatemala club planned for summer 2025.

• Omni-channel initiatives, digital channel sales growth, and expanded wellness services are driving incremental sales and engagement.

Financial highlights

• Comparable net merchandise sales increased 6.7% (7.9% in constant currency) year-over-year for Q2.

• Six-month total revenues increased 6.6% to $2.62 billion; net merchandise sales up 6.8% to $2.56 billion.

• Operating income for Q2 was $65.3 million (4.8% of revenue), up 2.6% year-over-year.

• Gross margin as a percentage of net merchandise sales decreased 10 bps to 15.6%, but increased $10 million in absolute terms.

• Membership income for the six months was $41.1 million, up 13.3% year-over-year.

Outlook and guidance

• Continued expansion with 55 clubs as of April 2025 and 56 expected by summer 2025, including new locations in Costa Rica and Guatemala.

• Ongoing investments in omni-channel capabilities, technology, digital transformation, and private-label products to support growth.

• Q3 comparable net merchandise sales for the four weeks ending March 30, 2025, were up 8.7% (10.2% in constant currency), with holiday timing impacting year-on-year comparison.

• Up to six new club locations are in due diligence and permitting, the highest number disclosed to date.

• Management expects to maintain strong liquidity and capital resources to support expansion and operations.