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PriceSmart (PSMT) Continues to Impress With Decent Comps Run

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Strong labor market, rising disposable income, elevated consumer sentiment and strategic efforts are working in tandem for PriceSmart, Inc.PSMT in a tough retail landscape. This San Diego, CA-based company registered comparable sales growth of 3.1% for five-week period ended Jun 3, 2018. This follows an increase of 1.9%, 3.5%, 4.4% and 0.5% for April, March, February and January, respectively.

Meanwhile, net warehouse club sales for the month of May rose 6.2% year over year to $248.7 million. The company had recorded sales increase of 1.6%, 8.9%, 6.6% and 6.2% in April, March, February and January, respectively.

For the nine months ended May 31, 2018, net sales jumped 5.1% to $2,312.2 million. Further, comparable warehouse club sales were up 3% for the 39-week period compared with the year-ago period.

The decent comparable sales performance has helped this Zacks Rank #3 (Hold) stock to increase 8% compared with the Retail-Discount Stores industry 's gain of 9% in the past three months. Moreover, we note that in a month the stock has improved 6.5%, outperforming the industry's gain of 5%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

PriceSmart, Inc. Price, Consensus and EPS Surprise

PriceSmart, Inc. Price, Consensus and EPS Surprise | PriceSmart, Inc. Quote

The industry, to which PriceSmart belongs, occupies a space in the bottom 31% (176 out of 256) among the Zacks industries. The industry of late has been bearing the brunt of heightened online competition thanks to Amazon AMZN , lower footfall and changing consumer spending patterns. These headwinds have compelled retailers to re-examine their strategies. They are now focusing more on enhancing omni-channel capabilities, optimizing store fleet and restructuring activities.

Apart from PriceSmart, retailers such as L Brands LB and Costco COST recently released comparable sales data for May. While L Brands reported comparable sales growth of 5%, Costco registered 11.7% increase.

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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.


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

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