PriceSmart's Nov Comps Below Oct - Analyst Blog


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Retail warehouse stores operator, PriceSmart, Inc. ( PSMT ), 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 growth.

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 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. 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. ( TJX ) carrying the same Zacks Rank as PriceSmart. In the broader retail sector, Pinnacle Foods Inc. ( PF ) and Omega Protein Corporation ( OME ) carrying a Zacks Rank #2 and Zacks Rank #1 (Strong Buy), respectively, are expected to perform better.

OMEGA PROTEIN (OME): Free Stock Analysis Report

PINNACLE FOODS (PF): Free Stock Analysis Report

PRICESMART INC (PSMT): Free Stock Analysis Report

TJX COS INC NEW (TJX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: OME , PF , PSMT , TJX

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