PriceSmart, inc. (NASDAQ: PSMT) the operator of almost 50 warehouse clubs throughout Latin America & The Caribbean, Friday announced operating results for the fiscal first quarter of 2022, which ended November 30, 2021.
Total revenues for the first quarter of fiscal year 2022 increased 11.2% to $975.4 million USD compared to $877.4 million in the comparable period of the prior year. For the first quarter of fiscal year 2022, net merchandise sales increased 12.6% to $944.0 million from $838.4 million in the first quarter of fiscal year 2021. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $8.4 million, or 1.0%, versus the same period in the prior year.
PriceSmart operates 49 warehouse clubs, up from 46 in 2020.
Comparable net merchandise sales for the 46 warehouse clubs that have been open for greater than 13 ½ calendar months increased 9.4% for the 13-week period ended November 28, 2021, compared to the comparable period of the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $8.5 million or 1.0% versus the same period in the prior year.
“Our team achieved a stellar first quarter, with Net merchandise sales growing by 12.6% and Comparable net merchandise sales growing 9.4% as compared to the same period last year. Our 12-month trailing Membership renewal rate is 89.0% and our membership base has grown to its all-time high,” said CEO Sherry S. Bahrambeygui.
PriceSmart reported operating income during the fiscal first quarter of $46.0 million compared to operating income of $44.5 million in the prior year period. Net income attributable to PriceSmart was $30.5 million, or $0.98 per diluted share, in the first quarter of fiscal year 2022 as compared to $27.7 million, or $0.90 per diluted share, in the first quarter of fiscal year 2021.
“We continue to augment the benefits of our Membership, including our Wellness initiatives in areas of Optical, Pharmacy and most recently, Audiology services. Our investments in technology and our omni-channel initiatives have enabled us to further expand services, membership benefits, and convenience for our members, allowing them to shop safely and enhancing the quality of their shopping experiences. Increasing our analytics capabilities is contributing to more timely and better decision-making in many areas of our business. In particular, the technology-enabled tools we are developing and applying are allowing us to unlock more value from our membership data, one of the key characteristics and differentiators of our business model,” commented Bahrambeygui.
PriceSmart operates 49 warehouse clubs in 12 countries and one U.S. territory (nine in Colombia; eight in Costa Rica; seven in Panama; five in the Dominican Republic and Guatemala; four in Trinidad; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). In addition, the Company plans to open its 50th club in Portmore, Jamaica in April 2022.