PriceSmart Inc., headquartered in San Diego, operates membership-based warehouse clubs in Latin America and the Caribbean, currently maintaining 54 clubs across 12 countries and one U.S. territory. For the first quarter of fiscal year 2025, the company exhibited a stable growth trajectory.

Net merchandise sales for the quarter totaled $1.22 billion, reflecting a year-over-year increase of 7.8%. Sales, when adjusted for constant currency fluctuations, also increased by 8.2%. Total revenue reached $1.26 billion, an increase of 7.8% from $1.17 billion a year ago. The company’s comparable net merchandise sales rose by 5.7%, or 6.1% when measured in constant currency.

Central America reported substantial contributions, with a sales increase of 8.4%, translating to approximately 310 basis points to overall consolidated comparable net merchandise sales growth. The Caribbean segment saw a 5.4% rise in net merchandise sales, contributing about 150 basis points to the overall growth. In Colombia, net merchandise sales surged by 10.7% (16.1% in constant currency), accounting for 110 basis points of total consolidated comparable net sales growth.

The company’s total gross margin as a percentage of net merchandise sales decreased by 20 basis points to 15.9%, down from 16.1% in the comparable quarter last year. Adjusted EBITDA amounted to $79.1 million, slightly higher than $77.8 million recorded in the same quarter last year. Net income was reported at $37.4 million, or $1.21 per diluted share, compared to $38.0 million, or $1.24 per diluted share, a year earlier.

Operating income for the quarter was $58.3 million, nearly consistent with the $58.2 million reported in the first quarter of fiscal year 2024. Cash and cash equivalents at the end of the quarter totaled $120.9 million, along with $101.3 million in short-term investments. The net cash provided by operating activities decreased to $38.5 million from $41.1 million in the same prior year period.

Notable expense changes included a 30 basis point increase in selling, general and administrative expenses as a percentage of revenue, attributed primarily to investments in technology. The effective tax rate for the quarter was 26.5%, down from 32.3% a year ago.

Comparative sales in merchandise categories included a 1.8% year-over-year increase in the foods category and a 10.2% increase in the non-foods category. Membership accounts grew by 4.8% to over 1.9 million with a renewal rate of 87.8%.

PriceSmart has plans for future expansion, intending to open two new warehouse clubs, which will bring the total to 56. The company’s digital sales through online channels saw a notable increase, rising by 21.1% to $69.4 million, making up 5.7% of total net merchandise sales.