Retail warehouse stores operator,
), recently reported net sales and comparable sales figures for
the month of Nov 2013.
Oct 2013 Results
Net warehouse club sales grew 13.8% to $209.0 million for the
month. Further, PriceSmart reported 6.3% year-over-year increase
in comparable warehouse sales (comps) for 29 warehouse clubs for
the five weeks ended Dec 1, 2013.
PriceSmart seems to be witnessing a declining comps trend
recently due to slowing consumer traffic. November's comps were
well short of 8.8%, 9.1% and 8.9% in October, September and
August, respectively. In fact, since October, comps have gone
below the 9%+ growth witnessed every month since April this year
and were also much below PriceSmart's past trend of double-digit
Headquartered in San Diego, PriceSmart is involved in the
operation of membership shopping warehouses in international
markets. It had 32 warehouse clubs in operation at the end of Nov
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. PriceSmart has gained from the shift in consumer demand
toward lower-priced brands and private-label merchandise.
PriceSmart reported mixed fourth-quarter and fiscal 2013
results on Oct 30. While the company beat the Zacks Consensus
Estimate for earnings in the fourth quarter, it missed the same
for revenues. The company plans to release its first-quarter
fiscal 2014 results on Jan 9, 2014. The Zacks Consensus Estimate
for the quarter stands at 74 cents.
Other Stocks to Consider
PriceSmart carries a Zacks Rank #2 (Buy). Another stock worth
considering in the retail/discount industry is
The TJX Companies, Inc.
) carrying the same Zacks Rank as PriceSmart. In the broader
Pinnacle Foods Inc.
Omega Protein Corporation
) carrying a Zacks Rank #2 and Zacks Rank #1 (Strong Buy),
respectively, are expected to perform better.
OMEGA PROTEIN (OME): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
PRICESMART INC (PSMT): Free Stock Analysis
TJX COS INC NEW (TJX): Free Stock Analysis
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