PriceSmart (PSMT) Q4 2024 earnings summary

Executive summary

• FY2024 total revenue reached $4.91 billion, up 11.4% year-over-year, with net merchandise sales of $4.78 billion, up 11.2%.

• Q4 FY2024 net merchandise sales were $1.19 billion, up 9.5% year-over-year; total revenue was $1.23 billion, up 9.6%.

• Membership accounts grew 4.7% to 1.89 million, with Platinum memberships at 12.3% and membership income up 13.9% to $75.2 million; renewal rate was 87.9%.

• Omni-channel/digital sales penetration reached 5.5% of Q4 net merchandise sales and 5.3% for FY2024; digital channel sales rose 21% year-over-year in Q4.

• Four new clubs opened in FY2024, with two more planned for 2025, bringing the total to 56 clubs.

Financial highlights

• Comparable net merchandise sales increased 6.2% in Q4 and 7.7% for the year.

• Gross margin for Q4 was 15.7% of net merchandise sales (+10 bps); total gross margin dollars increased 10.3% year-over-year.

• Operating income for Q4 was $49.2 million (+53.1% year-over-year); full-year operating income was $220.9 million (+19.7%).

• Net income for Q4 was $29.1 million ($0.94/diluted share), up from $15.4 million ($0.49/diluted share) last year; full-year net income was $138.9 million ($4.57/diluted share).

• Adjusted EBITDA for Q4 was $70.7 million (vs. $57.2 million last year); full-year adjusted EBITDA was $303.6 million (vs. $275.7 million).

Outlook and guidance

• Two new clubs planned for Costa Rica and Guatemala in 2025, bringing total to 56 clubs.

• Effective tax rate expected to decrease to 27–29% in FY2025 due to tax optimization initiatives.

• Plans to open additional pharmacy, optical, and audiology locations in FY2025.

• Continued investment in technology, distribution, and omnichannel capabilities to drive growth.