PriceSmart Q3 Profit Rises - Update

(RTTNews) - Discount warehouse club operator PriceSmart Inc. (PSMT), Wednesday said its profit for the third quarter improved from a year ago, due mainly to strong warehouse club sales.

Net warehouse club sales, which represents majority of revenues, advanced 12.3 percent. The growth indicates that consumers prefer shopping at warehouse clubs, which are considerably less expensive than other retailers, amidst the prevailing economic conditions. The company operated 31 warehouse clubs as of May 2013 compared to 29 last year.

PriceSmart's total revenues for the third quarter grew to $571.7 million from $505.3 million last year. Four analysts polled by Thomson Reuters had a consensus revenue estimate of $568.33 million for the period.

San Diego, California-based PriceSmart's profit for the third quarter rose to $18.5 million or $0.61 per share from $15.7 million or $0.52 per share in the same period last year. Analysts expected earnings of $0.64 per share for the quarter. Analysts' estimates typically exclude special items.

For the four weeks ended June 30, 2013, the company said comparable warehouse sales for the 29 warehouse clubs open at least 13 1/2 full months increased 9.7 percent. Net warehouse club sales for June increased 14.2 percent.

PSMT closed Wednesday's trading at $91.63, down $1.68 or 1.80%, on the Nasdaq. The stock further slipped $1.63 or 1.78% in after-hours trade.