Retail warehouse stores operator,
), recently reported net sales and comparable sales figures for
the month of Jul 2013.
Jul 2013 Results
Net warehouse club sales grew 11.9% to $188.5 million for the
month. Further, PriceSmart reported 8.9% year-over-year increase
in comparable warehouse sales (comps) for 29 warehouse clubs for
the four weeks ended Jul 28, 2013. PriceSmart's comps fell
slightly short of the 9%+ growth witnessed every month since
April this year. Though comps are showing some improving trends
from the slow growth witnessed in the first three months of the
calendar year, they are still below PriceSmart's past trend of
PriceSmart is involved in the operation of membership shopping
warehouses in international markets. It had 31 warehouse clubs in
operation at the end of Jul 2013.
PriceSmart sells good-quality basic consumer products at
affordable prices. Slow economic recovery and low employment
levels have led the consumers to shy away from high-priced
brands. The company has thus, been able to reap the benefits of
this recent trend with its lower-priced brands and the
Last month, PriceSmart announced mixed fiscal third-quarter
2013 results. While earnings of 61 cents per share missed the
Zacks Consensus Estimate of 64 cents by 4.7%, revenues beat the
same. We believe that better-than-expected top-line performance
was offset by lower gross margins which resulted in the earnings
Other Stocks to Consider
PriceSmart carries a Zacks Rank #3 (Hold). Other stocks in the
retail/discount industry that are worth considering include
Ross Stores Inc.
The Gap, Inc.
). All these companies carry a Zacks Rank #2 (Buy).
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PRICESMART INC (PSMT): Free Stock Analysis
ROSS STORES (ROST): Free Stock Analysis
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