Retail warehouse stores operator,
), recently reported net sales and comparable sales figures for
the month of May 2013.
May 2013 Results
Net sales grew 14.8% to $187.5 million for the month and 11.4%
to $1.67 billion for the nine months ended May 31, 2013.
Further, PriceSmart reported 9.8% year-over-year increase in
comparable warehouse sales for 29 warehouse clubs for the five
weeks ended Jun 2, 2013. Comps were better than 9.6%, 7.9% and
8.9% reported in the months of April, March and February,
respectively; thus showing improving trends. Comps are however,
still below its past trend of double-digit growth.
PriceSmart is involved in the operation of membership shopping
warehouses in international markets. It had 31 warehouse clubs in
operation at the end of May 2013. In the beginning of this year,
PriceSmart bought more than 20,000 square meters of land in the
southern Tegucigalpa, Honduras, where it plans to open another
Membership Warehouse Club. This Club, which is scheduled to be
opened in 2014, would be its third in the Honduras.
The company sells good-quality basic consumer products at
affordable prices. PriceSmart has been reaping the benefits of a
shift in consumer preference. Consumers are shifting toward
lower-priced brands and private-label merchandise sold by the
company due to slow economic recovery, low employment level and
reduced consumer spending. This business model helps PriceSmart
to consistently generate strong sales, earn profits and offset
Other Stocks to Consider
PriceSmart carries a Zacks Rank #4 (Sell). Other stocks in the
retail/discount industry that are worth considering include
The TJX Companies, Inc.
), both carrying a Zacks Rank #2 (Buy). In the broader consumer
Flower Foods, Inc
) carries a Zacks Rank #1 (Strong Buy)
FLOWERS FOODS (FLO): Free Stock Analysis
FREDS INC (FRED): Free Stock Analysis Report
PRICESMART INC (PSMT): Free Stock Analysis
TJX COS INC NEW (TJX): Free Stock Analysis
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