PriceSmart 1st-quarter profit dips but beats views, sales rise as shoppers still spend

PriceSmart 1Q profit dips as sales increase

SAN DIEGO — Warehouse club operator PriceSmart Inc. said Friday that its fiscal first-quarter profit dipped slightly, hurt by increased operating expenses even as shoppers continued to spend at its locations. Still, the results beat Wall Street’s expectations.

Warehouse club operators have benefited during the recession as consumers have headed to them in search of deals on basic items.

PriceSmart earned $10.4 million, or 35 cents per share, for the three months ended Nov. 30. That’s down 3 percent from $10.7 million, or 36 cents per share, a year ago.

Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, expected a profit of 34 cents per share.

Total operating expenses grew to $299.2 million from $290.3 million on higher warehouse club costs and expenses related to the opening of a new warehouse club.

Sales climbed 3 percent to $315.4 million from $305.2 million on improved warehouse club sales and slightly higher membership income.

The performance missed Wall Street’s revenue estimate of $316 million.

PriceSmart had 26 clubs in 11 countries and one U.S. territory during the quarter, compared with 25 club a year earlier.

Sales at the 25 warehouse clubs open at least a year rose 3.5 percent in December.

This figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Total net sales during December grew 8 percent to $152.1 million.