PriceSmart Inc. (NASDAQ: PSMT) reported financial results for its fiscal second quarter ended February 28, 2026, showing increases in revenue, earnings, and comparable sales, and outlined plans to expand its warehouse footprint in Central America.
The warehouse club operator, which serves markets across Latin America and the Caribbean, said total revenues rose 9.7% year over year to $1.50 billion, compared with $1.36 billion in the same quarter a year earlier. Net merchandise sales reached $1.47 billion, up 9.9% from the prior-year period, supported in part by foreign currency effects.
#Quarterly Performance and Sales Growth
Net income for the quarter increased to $49.1 million, or $1.62 per diluted share, from $43.8 million, or $1.45 per share, in the comparable period last year. Operating income also rose to $75.4 million from $65.3 million, reflecting higher sales volumes and operating scale.
Comparable net merchandise sales—covering locations open for more than 13.5 months—grew 7.6% during the 13-week period. On a constant currency basis, comparable sales increased 5.5%, indicating underlying growth across existing stores independent of exchange rate fluctuations.
Adjusted EBITDA, a non-GAAP measure used by the company to evaluate operating performance, rose to $99.7 million from $87.0 million in the prior-year quarter.
For the first six months of fiscal 2026, PriceSmart reported total revenues of $2.88 billion, an increase of 9.8% year over year. Net income for the six-month period reached $89.3 million, or $2.91 per diluted share, compared with $81.2 million, or $2.66 per share, in the same period of fiscal 2025.
#Expansion Plans in Guatemala
Alongside its financial results, the company disclosed plans to open an additional warehouse club in Guatemala. The new location, to be built in Villa Nueva, is expected to open in the spring of 2027, subject to obtaining required permits.
The site will span approximately five acres and is located about 13 miles from the company’s nearest existing club in Guatemala City. Once completed, the new facility would mark PriceSmart’s eighth warehouse club in the country.
The Guatemala project is part of a broader expansion pipeline. The company indicated that it expects to operate 61 warehouse clubs after opening five previously announced locations across the Dominican Republic, Jamaica, Costa Rica, and Guatemala over the next two years.
#Regional Footprint and Market Context
PriceSmart operates a membership-based warehouse club model similar to U.S. wholesale retailers but focused on international markets. As of the end of the quarter, the company operated 56 warehouse clubs across 12 countries and one U.S. territory, up from 54 locations a year earlier.
The company’s growth strategy has centered on expanding in existing markets where it has established supply chains and membership bases. The reported increase in comparable sales suggests continued demand across these regions, although part of the reported growth was influenced by currency movements, which added approximately 2.1% to quarterly net merchandise sales growth.
Retailers operating in emerging markets often face volatility related to foreign exchange rates, consumer spending patterns, and regional economic conditions. PriceSmart noted that currency fluctuations had a positive impact on both reported and comparable sales during the quarter, though such effects can vary over time.
#Operational Considerations and Outlook
While the company reported higher earnings and revenue, its forward-looking statements highlight several factors that could affect future performance. These include economic conditions in its operating markets, potential supply chain disruptions, currency volatility, and regulatory or political risks associated with international operations.
Additionally, expansion projects such as the planned Guatemala club remain subject to permitting and construction timelines, which could influence delivery schedules. The company has also been investing in integrating e-commerce capabilities with its traditional warehouse model, which may involve additional operational costs.
PriceSmart’s results reflect steady growth in its core business alongside incremental expansion in key markets. The combination of comparable sales gains and new club openings remains central to its strategy, though execution will depend on broader economic and operational conditions in the regions where it operates.