Executive Summary

Q2 2025 delivered solid top-line and profitability: revenues rose 5.6% to $1.36B and diluted EPS was $1.45, with adjusted EBITDA at $87.0M; comparable sales grew 6.7% (7.9% constant currency) .
Versus Wall Street: revenue beat consensus by ~1.6% (actual $1.364B vs $1.342B*), EPS was essentially in line to a slight miss ($1.45 vs $1.46*), and EBITDA missed (actual ~$87.96M vs $90.0M*) — reflecting FX and conversion costs in “other expense” and higher planned tech investments .
Execution highlights: strong non-food and health services growth; digital net merchandise sales hit a record $76.2M (5.7% mix), up 19.3% YoY; Platinum membership penetration increased to 14.5% .
Guidance/tone: management guided an annualized ETR of ~27–29% and flagged tariff uncertainty but noted regional sourcing and FTZ operations as mitigating factors; near-term comp sales for the first 4 weeks of Q3 were up 8.7% (10.2% cc) .
Potential stock catalysts: continued comp momentum and omnichannel adoption, execution on DC build-out and regional sourcing (tariff mitigation), and dividend increase (annual $1.26/share) supporting total return profile .

What Went Well and What Went Wrong

What Went Well

Broad-based comp strength: comparable net merchandise sales +6.7% (+7.9% cc), with category drivers in non-food (+7.9%) and health services (+15.5%) .
Digital and membership momentum: digital net merchandise sales reached $76.2M (5.7% of sales), +19.3% YoY; Platinum membership penetration increased to 14.5%, up from 12.3% at FY24-end and 9.6% in the prior year quarter .
Operational expansion: opened ninth Costa Rica club (Cartago), bringing total clubs to 55, with Guatemala (Quetzaltenango) slated for summer 2025; DC network enhancements progressing across multi-club markets .

Management quote: “Our operations within a free trade zone in both the U.S. and Costa Rica provide us with a significant advantage… to keep our supply chain as efficient and as cost-effective as possible and minimize the impact of related costs to our members” .

What Went Wrong

Margin mix and FX headwinds: gross margin rate declined 10 bps YoY to 15.6%; FX and conversion costs pressured “other expense” despite reduced revaluation losses .
SG&A rate up 20 bps: SG&A as a percentage of revenue rose to 12.4% vs 12.2% prior year, driven by planned technology investments .
EBITDA vs consensus: EBITDA missed Street expectations (actual ~$87.96M vs $90.0M*), reflecting ongoing conversion premiums and strategic investment spend .

Analyst concern (Q&A): tariff uncertainty and potential reciprocal tariffs; while management highlighted mitigants (local/regional sourcing and direct Asia-to-market shipping), they acknowledged the fluid environment .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenues ($USD Billions)	$1.226	$1.258	$1.364
Net Merchandise Sales ($USD Billions)	$1.193	$1.224	$1.335
Operating Income ($USD Millions)	$49.2	$58.3	$65.3
Net Income ($USD Millions)	$29.1	$37.4	$43.8
Diluted EPS ($USD)	$0.94	$1.21	$1.45
Adjusted EBITDA ($USD Millions)	$70.7	$79.1	$87.0

Margin and rate comparison (YoY, Q2 2025 vs Q2 2024):

Metric	Q2 2024	Q2 2025
Gross Margin % (of Net Merchandise Sales)	15.7%	15.6%
Total Revenue Margin %	17.1%	17.1%
SG&A % of Revenues	12.2%	12.4%
Effective Tax Rate	30.5%	27.2%

Vs Wall Street consensus (Q2 2025):

Metric	Consensus	Actual	Surprise
Revenue ($USD Billions)	$1.3425*	$1.3639	+1.6% beat
EPS ($USD)	$1.46*	$1.45	-0.01 miss
EBITDA ($USD Millions)	$90.0*	~$87.96*	~2.3% miss

Values marked with * retrieved from S&P Global.

Segment breakdown (Q2 2025 YoY):

Region	Net Sales YoY (Reported)	Net Sales YoY (Constant Currency)	Comp Sales YoY (Reported)	Comp Sales YoY (Constant Currency)
Central America (30 clubs)	+5.4%	+4.6%	+5.6%	+4.9%
Caribbean (14 clubs)	+6.4%	+8.6%	+8.3%	+10.5%
Colombia (10 clubs)	+6.6%	+16.0%	+8.6%	+17.7%

KPIs and operating metrics (Q2 2025):

KPI	Value
Comparable net merchandise sales YoY	+6.7% (7.9% cc)
Membership accounts	>1.9M (+4.1% YoY), 87% 12‑month renewal
Platinum membership penetration	14.5% (vs 12.3% at FY24‑end; 9.6% prior‑year quarter)
Digital net merchandise sales	$76.2M; 5.7% of sales; +19.3% YoY
Orders via app/website	+14.4% YoY; Avg transaction value +3.9% YoY
Basket metrics	Avg ticket +1.9%; transactions +3.9%; items/basket +1.8% YoY
Private label mix	27.4% of merchandise sales (+30 bps YoY)
Cash, cash equivalents & restricted cash	$145.5M
Short‑term investments	~$116.9M
Local currency balances with convertibility issues	$77.3M (Trinidad, Honduras)
Inventory per club	+$878k (+9.4% YoY); days on hand +1 day (+3.1%)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Effective Tax Rate	FY2025 onward	N/A	~27%–29%	New guidance; lowered vs prior-year effective rates
Comparable Sales (early Q3 indicator)	4 weeks ended Mar 30, 2025	N/A	+8.7% (10.2% cc)	Positive trend signal
Dividend	FY2025	$1.16/share (FY2024)	$1.26/share (two $0.63 payments)	Raised 8.6%
Club footprint	FY2025	Planned CR/GT openings	Costa Rica ninth club opened; Guatemala (Quetzaltenango) targeted for summer 2025	Executed/maintained timeline
Real estate pipeline	FY2026+	N/A	“Up to 6 locations” in due diligence/permitting	New disclosure of pipeline depth

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Omnichannel/digital	Continued growth off a small base (no specific mix disclosed in PRs)	Record $76.2M digital sales; 5.7% mix; +19.3% YoY; app/web orders +14.4%	Accelerating adoption
Membership strategy	Broad growth; comps supported by traffic and ticket	Platinum penetration 14.5%; renewal 87%; >1.9M accounts (+4.1%)	Stronger loyalty/mix shift
Supply chain/DC build-out	FY2024: DC network as a focus; plans for Guatemala DC	Expanding DCs (Guatemala, Trinidad, Dominican Republic) and China consolidation; own truck fleets	Structural improvement
Tariffs/macro	Not highlighted in PRs	Significant uncertainty; mitigants via FTZ and regional sourcing; ~50% local/regional; ~1/3 U.S. sourcing	Managed risk; watch policy path
Category performance	FY2024 comps +6.2% in Q4; FY2025 Q1 comps +5.7%	Foods +5.3%; non-food +7.9%; food services/bakery +4.7%; health services +15.5%	Broad-based strength
Real estate	Q4 2024: planned CR & GT openings	Costa Rica (Cartago) opened; Guatemala (Quetzaltenango) targeted	Executing pipeline

Management Commentary

Robert Price: “One benefit for PriceSmart is that about 50% of the products we sell are sourced either locally or in the region and about 1/3 of the products we source come from the United States… we’re not as dependent on Asia and Europe as perhaps other merchants are” .
Michael McCleary: “Total gross margins… decreased 10 bps to 15.6%… SG&A… increased to 12.4%… primarily related to planned technology investments… On a go-forward basis, we estimate our annualized effective tax rate will be approximately 27% to 29%” .
Michael McCleary: “We are… enhancing our distribution and logistics network… expected opening of distribution centers in China and in each of our multi-club markets… to keep our supply chain as efficient and as cost-effective as possible” .
Michael McCleary: “Digital channels… represented a record high of $76.2 million or 5.7% of total net merchandise sales… significant growth opportunities… continue to invest in this part of our business” .

Q&A Highlights

Tariff exposure: Management is not aware of reciprocal 10% tariffs in operating countries yet; mitigants include direct Asia-to-market shipping via regional DCs and significant local/U.S. sourcing; environment remains fluid .
Store pipeline: Up to six locations in various due diligence/permitting stages; timing not disclosed; reflects deep pipeline vs recent history .
Near-term comp cadence: First four weeks of Q3 comps +8.7% (10.2% cc), aided by Easter timing shift (this year in April vs last year in March) .
Vendor dynamics: Expect cooperation from Asia suppliers; potential cost adjustments considered amid U.S. tariff changes; focus on cost containment and consolidation .

Estimates Context

Q2 2025 results vs consensus: revenue beat (~+1.6%), EPS slight miss, EBITDA miss; suggests top-line resilience with modest rate/mix pressure and continued strategic spend. Revenue Consensus: $1,342.5M* vs Actual: $1,363.9M; EPS Consensus: $1.46* vs Actual: $1.45; EBITDA Consensus: $90.0M* vs Actual: ~$87.96M*. Values retrieved from S&P Global.
Forward look: Street modeling (limited coverage) implies continued mid-single-digit revenue growth and steady EPS cadence into Q3/Q4, though tariff outcomes and FX can drive estimate revisions. Values retrieved from S&P Global.

Key Takeaways for Investors

Broad-based comp and category strength underpin resilient demand; non-food and health services were notable drivers alongside steady food growth .
Omnichannel is scaling: $76.2M digital sales, 5.7% mix, with improving order growth and higher ATV — a structural tailwind for traffic, convenience, and share of wallet .
Margin picture stable-to-mixed: gross margin down 10 bps YoY and SG&A up 20 bps due to strategic tech investments; operating income up 2.6% YoY .
FX/conversion costs remain a watch item; management reduced revaluation losses but conversion premiums rose; continued mitigation via DCs, vendor cooperation, and FTZ operations .
Tax rate guidance lowered to ~27–29% structurally, supporting EPS leverage as scale and optimization initiatives accrue .
Capital returns: Board raised annual dividend to $1.26/share (+8.6%), reinforcing confidence and total-return appeal .
Execution catalysts: new Costa Rica club opened; Guatemala slated for summer; expanding in-country DCs and fleets to improve in-stocks, landed costs, and speed-to-market .

Supporting Documents and Data:

Q2 2025 8‑K (Item 2.02) and press release with full financial statements and non‑GAAP reconciliations .
Q2 2025 earnings call transcript (full) .
Prior quarters for trend context: Q1 2025 press release with full statements ; Q4 2024 press release with full statements .
Dividend announcement (Feb 2025): $1.26/share annual dividend .

PRICESMART INC (PSMT)·Q2 2025 Earnings Summary