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PI

PRICESMART INC (PSMT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 delivered solid topline growth: total revenues $1.33B (+8.6% YoY) and net merchandise sales $1.30B (+9.2% YoY); diluted EPS was $1.02 .
  • Versus consensus, revenue was a slight beat while EPS missed: Revenue $1.331B vs $1.330B estimate*, EPS $1.02 vs $1.06 estimate*; estimate depth was limited (EPS: 2 estimates; Revenue: 1)*.
  • Consolidated comps rose 7.5% (USD and constant currency), with strength in Colombia (+18% comps), and broad-based positive comps in Central America and the Caribbean .
  • Margins held: gross margin 15.7% (unchanged YoY), total revenue margin 17.4% (+10 bps YoY); SG&A was 13.5% of revenue (+20 bps YoY), reflecting tech investments (RELEX/ALERA) and one-time items .
  • Near-term catalysts: Q1-to-date comps up 7.2% (USD) and 6.5% in constant currency; membership income +14.9% YoY; pipeline of three clubs opening in 2026 (DR and Jamaica) and supply chain upgrades including new regional distribution centers .

What Went Well and What Went Wrong

What Went Well

  • Broad-based comp growth and volume: Comparable net merchandise sales +7.5% (USD and cc) in Q4; transactions +8.7% YoY with flat item pricing and higher items per basket (+1.7%) .
  • Membership monetization: Q4 membership income $22.6M (+14.9% YoY) on higher Platinum penetration (17.9%) and prior fee actions; 12-month renewal rate 88.8% .
  • Strategic execution and expansion: Colombia comps +18.3% (USD) drove outsized contribution; company moved into new HQ and continues supply chain transformation, including regional DC plans and RELEX rollout .
    • Quote: “Net merchandise sales and total revenue were both over $1.3 billion in the fourth quarter” .
    • Quote: “Digital channel sales reached $306.7 million in fiscal year 2025, up 21.6% year over year” .

What Went Wrong

  • EPS missed consensus despite revenue beat: $1.02 vs $1.06*; other expense remained a drag ($6.4M loss), though improved YoY by ~$1M .
  • SG&A deleverage: Q4 SG&A at 13.5% of revenue (+20 bps YoY), driven by tech investments and transition/relocation costs; FY2026 SG&A to be impacted by CEO compensation .
  • FX and liquidity constraints: Ongoing USD liquidity issues in Trinidad with $59.7M trapped in local currency; Honduras improving but still subject to strict controls .

Financial Results

Income Statement vs Prior Quarters

MetricQ2 2025Q3 2025Q4 2025
Total Revenues ($USD Billions)$1.364 $1.317 $1.331
Net Merchandise Sales ($USD Billions)$1.335 $1.290 $1.303
Operating Income ($USD Millions)$65.3 $56.2 $52.8
Net Income ($USD Millions)$43.8 $35.2 $31.5
Diluted EPS ($)$1.45 $1.14 $1.02

Margins and Expense Rates (Q4)

MetricQ4 2024Q4 2025
Total Gross Margin % (of Net Merchandise Sales)15.7% 15.7%
Total Revenue Margin %—17.4% (+10 bps YoY)
SG&A % of Total Revenues13.3% 13.5% (+20 bps YoY)

Actual vs Estimates (Wall Street Consensus)

MetricEstimate*ActualSurprise
Revenue ($USD Billions)$1.330$1.331 Slight beat
Diluted EPS ($)$1.06$1.02 Miss

Values with asterisks retrieved from S&P Global.

Segment and Category Breakdown (Q4)

Region / CategoryKPIYoY Change
Central AmericaNet merchandise sales+8.9% (8.0% cc)
Central AmericaComparable net merchandise sales+6.0% (5.3% cc)
CaribbeanNet merchandise sales+6.3% (7.5% cc)
CaribbeanComparable net merchandise sales+6.5% (7.8% cc)
ColombiaNet merchandise sales+18.2% (18.7% cc)
ColombiaComparable net merchandise sales+18.3% (18.8% cc)
Consolidated comps contributionCentral America~+360 bps
Consolidated comps contributionCaribbean~+180 bps
Consolidated comps contributionColombia~+210 bps
Foods categorySales growth~+7.6% YoY
Non-foodsSales growth~+7.9% YoY
Foods, services, bakerySales growth~+7.5% YoY
Health servicesSales growth~+17% YoY

KPIs (Q4 unless noted)

KPIValue
Comparable net merchandise sales+7.5% (USD and cc)
Avg ticket (YoY)+0.5%
Transactions (YoY)+8.7%
Items per basket (YoY)+1.7%
Membership income (Q4)$22.6M
Membership accounts>2.0M (+6.2% YoY)
Platinum penetration17.9% (vs 12.3% PY)
Renewal rate (12-month)88.8%
Adjusted EBITDA (Q4)$75.5M
Digital channel sales (FY25)$306.7M (+21.6% YoY)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Comparable net merchandise sales (to-date)Q1 FY2026 (8 weeks ended Oct 26, 2025)n/a+7.2% USD; +6.5% cc n/a
SG&A outlookFY2026n/aSG&A to be impacted by CEO compensation (was $0 comp in FY2025 interim CEO) Raised (costs)
Club openings (pipeline)2026n/aThree clubs: DR (La Romana, spring 2026), Jamaica (Montego Bay summer 2026; South Camp Rd fall 2026) Expansion
Supply chain/DC initiativesFY2026n/aNew regional DCs in Trinidad and DR; continued RELEX/ALERA/Workday rollouts Execution in FY2026
Tax rate contextFY2025 actualn/aFY25 ETR 28.4%; Q4 ETR 32% due to minimum tax positions Informational

No formal quantitative revenue/EPS guidance ranges were provided.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2, Q3)Current Period (Q4)Trend
Technology/AI/OmniQ2: No detailed tech narrative; Q3: continued omni growth and evaluation of new market (Chile) FY25 digital sales $306.7M (+21.6%); native app migration; ALERA POS rollout; Workday HCM implementation Accelerating omni and systems upgrades
Supply chain/logisticsQ2: New CR club opened; general growth Panama cold chain adaptation; new dry DC in Guatemala; planned DCs in Trinidad and DR; China consolidation centers; own trucking fleet; RELEX migration continues Building regional DC network and forecasting capabilities
Tariffs/macro/remittancesQ2/Q3: FX headwinds shown in constant-currency metrics Q&A: Remittances fee risk discussed; no visible consumption impact yet; USD liquidity constraints in Trinidad; Honduras improved but monitored Macro/FX risks persist; watched
Product performanceQ3: Broad-based growth; new market evaluation Foods ~+7.6%, non-foods ~+7.9%, health services +17% Broad-based growth; services strong
Regional trendsQ2: 55 clubs; CR opening Consolidated comps +7.5%; Colombia outsized growth; Central America and Caribbean positive comps Strength across geographies; Colombia leading
Regulatory/legalQ2/Q3: FX headwinds noted Currency controls/liquidity in Trinidad; monitoring Honduras Ongoing constraint
Real estate expansionQ2: CR club opening 3 new Jamaica/DR clubs slated for 2026; Chile market entry progressing (site under executive agreement) Pipeline building

Management Commentary

  • Strategic focus on real estate and new markets: “In August 2025, we opened our seventh warehouse club in Guatemala… We’re advancing on our plan to enter Chile… we’ve hired a Country General Manager and signed an executive agreement for a prospective club site” .
  • Omni-channel and member experience: “Digital channel sales reached $306.7 million in fiscal year 2025… migrating our mobile application to fully native iOS and Android… ALERA POS… Workday HCM” .
  • Membership strength and pricing power: “Fourth quarter membership income reached $22.6 million, a 14.9% increase… Platinum membership represented 17.9% of our total base” .
  • Margin discipline: “Total gross margin… remained unchanged at 15.7%… Total revenue margins… increased 10 basis points to 17.4%… SG&A increased to 13.5%… due to investments in technology” .

Q&A Highlights

  • Jamaica hurricane impact: Stores undamaged; brief closures; restocking underway and Kingston port receiving merchandise .
  • Store sizing/format: South Camp Road Jamaica expected to be typical-sized; parking format adjustments planned .
  • Chile timing: Progress continues; opening dates not yet disclosed beyond 10-K; site under executive agreement .
  • Remittances fee risk: Several markets have high remittances exposure; no current indication of consumption impact; monitoring .

Estimates Context

  • Q4 FY2025 consensus EPS was $1.06 vs actual $1.02 (miss); consensus revenue was ~$1.330B vs actual $1.331B (slight beat).
  • Estimate depth was limited (EPS: 2 estimates; Revenue: 1 estimate)*, suggesting low visibility and greater sensitivity to one-offs and FX.
  • Post-reporting, estimate models likely to adjust for: sustained comps strength, mild margin deleverage from tech investments/one-time costs, continued other expense tied to FX conversion and revaluation .

Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Resilient demand across regions with volume-led growth and stable gross margins; Colombia continues to outperform, underpinning consolidated comps .
  • Membership monetization is a durable lever (higher Platinum mix, fee actions), supporting revenue margin expansion and recurring cash flows .
  • Near-term modeling: modest EPS pressure vs consensus due to SG&A and FX-related other expense; topline momentum offsets via comps and transactions .
  • Structural improvements in supply chain (regional DCs, RELEX) and front-end systems (ALERA, native app) should bolster productivity and in-stock, aiding throughput and margins over FY2026 .
  • Liquidity constraints in select markets (Trinidad) and remittance fee risks warrant monitoring; management indicates no consumption impact to date but these are credible macro watch items .
  • Expansion pipeline (DR, Jamaica; Chile pathway) provides multi-year unit growth catalysts; expect capex cadence and pre-opening costs to be managed but visible in SG&A .
  • Near-term trading set-up: mixed print (rev beat, EPS miss*) against strong Q1-to-date comps and membership gains; stock narrative likely driven by margin trajectory vs tech investments and FX normalization .