8-K: PriceSmart Q1 2026 Earnings Soar, New Costa Rica Club Planned

PriceSmart reports strong fiscal first quarter 2026 results with significant revenue and earnings growth, alongside plans for a tenth warehouse club in Costa Rica.

Summary

• Total revenues for the first quarter of fiscal year 2026 increased 9.9% to $1.38 billion compared to $1.26 billion in the comparable prior-year period.
• Net merchandise sales increased 10.6% to $1.35 billion from $1.22 billion in the first quarter of fiscal year 2025.
• Comparable net merchandise sales for the 54 warehouse clubs open for greater than 13 calendar months increased 8.0%.
• Operating income during the fiscal first quarter was $62.9 million, up from $58.3 million in the prior-year period.
• Net income increased 7.3% to $40.2 million, or $1.29 per diluted share, compared to $37.4 million, or $1.21 per diluted share, in the prior-year period.
• Adjusted EBITDA for the first quarter of fiscal year 2026 was $86.9 million compared to $79.1 million in the same period last year.
• The company has purchased land and plans to open its tenth warehouse club in Costa Rica, located in Ciudad Quesada, anticipated to open in the fall of 2026.
• Once this new club and three other previously announced clubs are open, PriceSmart will operate a total of 60 warehouse clubs.

Sentiment

Score: 8

Explanation: The company reported strong financial results across key metrics including revenue, net merchandise sales, operating income, net income, and EPS. Additionally, the announcement of a new club in Costa Rica and plans for three others demonstrates a clear growth strategy and confidence in future expansion.

Positives

• Total revenues increased 9.9% to $1.38 billion in Q1 FY26 from $1.26 billion in Q1 FY25.
• Net merchandise sales grew 10.6% to $1.35 billion in Q1 FY26 from $1.22 billion in Q1 FY25.
• Comparable net merchandise sales for clubs open over 13 months increased 8.0% for the 13-week period ended November 30, 2025.
• Net income increased 7.3% to $40.2 million in Q1 FY26 from $37.4 million in Q1 FY25.
• Diluted earnings per share rose to $1.29 in Q1 FY26 from $1.21 in Q1 FY25.
• Operating income increased to $62.9 million in Q1 FY26 from $58.3 million in Q1 FY25.
• Adjusted EBITDA grew to $86.9 million in Q1 FY26 from $79.1 million in Q1 FY25.
• Foreign currency exchange rate fluctuations positively impacted net merchandise sales by $13.8 million, or 1.1%, and comparable net merchandise sales by 1.1%.
• Expansion plans include a tenth club in Costa Rica (Ciudad Quesada) opening Fall 2026, contributing to a total of 60 clubs once all four announced clubs are open.

Negatives

• Interest expense increased to $4.420 million in Q1 FY26 from $2.695 million in Q1 FY25.
• Other expense, net, was $5.761 million in Q1 FY26, primarily consisting of transaction costs for converting local currencies with liquidity issues and foreign currency losses due to revaluation of monetary assets and liabilities.

Risks

• Various political, economic, and compliance risks associated with international operations, including effects of tariffs, international trade wars, and disruptions to remittances.
• Adverse changes in economic conditions in markets.
• Natural disasters.
• Volatility in currency exchange rates and illiquidity of certain local currencies in markets.
• Competition.
• Consumer and small business spending patterns.
• Political instability.
• Increased costs associated with the integration of online commerce with traditional business.
• Ability to successfully execute strategic initiatives.
• Reliance on third-party service providers, including those supporting transaction and payment processing, data security, and other technology services.
• Cybersecurity breaches that could cause disruptions in systems or jeopardize the security of member, employee, or business information.
• Cost increases from product and service providers.
• Interruption of supply chains.
• Exposure to product liability claims and product recalls.
• Recoverability of moneys owed to PriceSmart from governments.

Future Outlook

The company plans to open four new warehouse clubs: one in La Romana, Dominican Republic (Spring 2026), two in Jamaica (Montego Bay in Fall 2026 and South Camp Road/Kingston in Winter 2026), and a tenth club in Ciudad Quesada, Costa Rica (Fall 2026). These additions will bring the total number of operating warehouse clubs to 60.

Management Comments

• PriceSmart announced results for the fiscal first quarter of 2026, which ended on November 30, 2025.
• The Company has purchased land and plans to open its tenth warehouse club in Costa Rica, located in Ciudad Quesada, approximately 47 miles northwest from the nearest club in San Jose, anticipated to open in the fall of 2026.
• Once this club and three other previously announced clubs are open, the Company will operate 60 warehouse clubs.

Industry Context

PriceSmart operates U.S.-style membership shopping warehouse clubs across Latin America and the Caribbean. The reported strong financial performance and continued expansion plans, including new club openings, suggest confidence in the growth potential of these regional markets and the resilience of its membership-based retail model amidst broader economic conditions.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: Positive financial results and clear growth strategy through club expansion are likely to be favorable.
• Employees: Expansion with new clubs may lead to job creation and career opportunities.
• Customers: New clubs offer increased access to PriceSmart's merchandise and services in new geographic areas.
• Suppliers: Increased sales volume and new club openings may lead to higher demand for products and services from suppliers.

Next Steps

• Host a conference call on January 8, 2026, to discuss the financial results.
• Open a new warehouse club in La Romana, Dominican Republic in Spring 2026.
• Open a new warehouse club in Montego Bay, Jamaica in Fall 2026.
• Open a new warehouse club in Ciudad Quesada, Costa Rica in Fall 2026.
• Open a new warehouse club in South Camp Road (Kingston), Jamaica in Winter 2026.

Key Dates

Recommendation

The company demonstrates robust financial performance with significant growth across key revenue and profitability metrics for the fiscal first quarter. The announced plans for four new warehouse clubs indicate a strong strategic outlook and potential for continued market penetration and revenue generation in its target regions. These positive indicators suggest a favorable investment opportunity.

Keywords

PriceSmart, PSMT, warehouse clubs, retail, Latin America, Caribbean, earnings, Q1 2026, financial results, revenue growth, EPS, EBITDA, club expansion, Costa Rica, international operations