SAN DIEGO, Sept. 10, 2018 /PRNewswire/ -- PriceSmart,
Inc. (NASDAQ: PSMT) today announced that for the month of
August 2018 net sales increased 4.4%
to $248.8 million, from $238.3 million in August a year earlier. For the
twelve months ended August 31, 2018,
net sales increased 4.9% to $3,053.8
million from $2,910.1 million
for the twelve months ended August 31,
2017. There were 41 warehouse clubs in operation at the end
of August 2018 and 39 warehouse clubs
in operation at the end of August
2017.
For the five weeks ended September 2,
2018, comparable warehouse sales for the 39 warehouse clubs
open at least 13 1/2 full months were flat from the comparable 5
week period a year ago. For the fifty-two week period ended
September 2, 2018, comparable
warehouse sales increased 2.3%, compared to the comparable
fifty-two week period a year ago.
PriceSmart plans to release fourth quarter fiscal year 2018
financial results on Thursday, October 25,
2018, after the market closes. PriceSmart management will
host a conference call at 12:00 p.m. Eastern
time (9:00a.m. Pacific time)
on Friday, October 26, 2018, to
discuss the financial results. Individuals interested in
participating in the conference call may do so by dialing (855)
209-8211 toll free, or (412) 317-5214 for international callers and
asking to join the PriceSmart, Inc. call. A digital replay will be
available through November 2, 2018,
following the conclusion of the call by dialing (877) 344-7529 for
domestic callers, or (412) 317-0088 for international callers, and
entering replay passcode 10123807.
About PriceSmart
PriceSmart, headquartered in San
Diego, owns and operates U.S.-style membership shopping
warehouse clubs in Latin America
and the Caribbean, selling high
quality merchandise at low prices to PriceSmart members. PriceSmart
now operates 41 warehouse clubs in 12 countries and one U.S.
territory (seven each in Colombia
and Costa Rica; five in
Panama; four each in Trinidad and Dominican Republic; three each in Guatemala and Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). Additionally,
PriceSmart through its Aeropost subsidiary provides logistics,
payment and ecommerce services in Latin
America and the Caribbean.
Aeropost currently serves customers in 38 countries with
Costa Rica, Trinidad and Jamaica as its largest markets.
This press release may contain forward-looking statements
concerning the Company's anticipated future revenues and earnings,
adequacy of future cash flow, proposed warehouse club openings, the
Company's performance relative to competitors, the outcome of tax
proceedings and related matters. These forward-looking statements
include, but are not limited to, statements containing the words
"expect," "believe," "will," "may," "should," "project,"
"estimate," "anticipated," "scheduled," and like expressions, and
the negative thereof. These statements are subject to risks and
uncertainties that could cause actual results to differ materially
including, but not limited to, the following external and internal
risks:
External Risks:
- Natural disasters that might cause damages not covered by
insurance;
- Negative macroeconomic conditions;
- Volatility in foreign currency exchange rates and limitations
on our ability to convert foreign currency to U.S. dollars;
- Changes in, and inconsistent enforcement of, laws and
regulations in countries where we operate, including those related
to tariffs and taxes;
- Compliance risks;
- Crime and security concerns, which can adversely affect the
economies of the countries in which we operate and which require us
to incur additional costs to provide additional security at our
warehouse clubs;
- Recoverability of moneys owed to PriceSmart from governments in
countries where we do business;
- The possibility of operational interruptions related to union
work stoppages; and
- Political instability, such as recent unrest in Honduras and the ongoing anti-government
protests in Nicaragua, which have
disrupted our operations there.
Internal Risks:
- Timely identification or effectively responding to changes in
consumer shopping preferences with resulting negative effects on
our sales and market share;
- Significant competition, including from international online
retailers;
- Limitations on the availability of appropriate sites for new
warehouse clubs could adversely affect growth;
- Increased costs due to delays or failure in our efforts to
integrate our online commerce with our traditional brick and mortar
business;
- Acquisitions, such as our acquisition of Aeropost, Inc. in
March 2018, may expose us to
additional risks;
- Cost increases from product and service providers;
- Interruption of supply chains, which might adversely impact on
our ability to import merchandise;
- Failure to maintain our brand's reputation;
- Exposure to product liability claims and product recalls;
- Failure to maintain our computer systems and/or disruption in
those systems;
- Delays or cost overruns implementing our anticipated new
Enterprise Resource Planning system;
- Any failure to maintain the security of the information we hold
relating to our company, our members, employees and suppliers;
- Failure to attract and retain qualified employees, significant
increases in wage and benefit expenses, or changes in labor laws
with consequent material adverse effect on our financial
performance;
- Changes in accounting standards affecting management's
financial assumptions, projections, estimates and judgments;
and
- A few of our stockholders own approximately 25.3% of our voting
stock as of May 31, 2018, which may
make it difficult to complete some corporate transactions without
their support and may impede a change in control.
The risks described above as well as the other risks detailed in
the Company's U.S. Securities and Exchange Commission ("SEC")
reports, including the Company's Annual Report on Form 10-K filed
for the fiscal year ended August 31,
2017 filed on October 26,
2017, pursuant to the Securities Exchange Act of 1934, see
"Part I - Item 1A - Risk Factors," could materially and adversely
affect our business, financial condition and results of operations.
These risks are not the only risks that the Company faces. The
Company could also be affected by additional factors that apply to
all companies operating globally and in the U.S., as well as other
risks that are not presently known to the Company or that the
Company currently considers to be immaterial.
For further information, please contact Maarten O. Jager, Principal Financial Officer
and Principal Accounting Officer (858) 404-8826.
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SOURCE PriceSmart, Inc.