PriceSmart Announces November Sales; also announces Earnings Release and Conference Call Dates for First Quarter Fiscal Year 2019 Financial Results
SAN DIEGO, Dec. 7, 2018 /PRNewswire/ -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of November 2018, net merchandise sales decreased 1.0% to $258.9 million from $261.5 million in November a year earlier. For the three months ended November 30, 2018, net sales increased 0.3% to $747.4 million from $745.4 million in the same period last year. There were 41 warehouse clubs in operation at the end of November 2018 compared to 40 warehouse clubs in operation in November 2017.
For the five weeks ended December 2, 2018, comparable warehouse sales for the 40 warehouse clubs open at least 13 ½ full months decreased 2.8% compared to the same five-week period last year. For the thirteen-week period ended December 2, 2018, comparable warehouse sales decreased 2.1% compared to the thirteen-week period a year ago.
PriceSmart also announced that it plans to release first quarter fiscal year 2019 financial results on Wednesday, January 9, 2019, after the market closes. PriceSmart management plans to host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, January 10, 2019, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (855) 209-8211 toll free, or (412) 317-5214 for international callers, and ask to join the PriceSmart, Inc. earnings call. A digital replay will be available through January 17, 2019, following the conclusion of the call by dialing (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering replay access code 10126894.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 41 warehouse clubs in 12 countries and one U.S. territory (seven each in Colombia and Costa Rica; five in Panama; four each in Trinidad and Dominican Republic; three each in Guatemala and Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). The Company has acquired property and is currently developing warehouse clubs in Santiago, Panama and Santo Domingo, Dominican Republic that are expected to open in the spring of 2019. The Company also plans to open warehouse clubs in San Cristobal, Guatemala and an additional club in Panama City, Panama, in the fall of 2019. Once these four new clubs are open, the Company will operate 45 warehouse clubs. Additionally, PriceSmart through its Aeropost subsidiary provides logistics, payment and ecommerce services in Latin America and the Caribbean. Aeropost currently serves customers in 38 countries with Costa Rica, Trinidad and Jamaica as its largest markets.
This press release may contain forward-looking statements concerning the Company's future performance. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to, the following external and internal risks:
External Risks:
- International operations, which exposes us to various risks;
- Significant weather events and other natural disasters that might cause damages that might not be adequately compensated by insurance;
- Negative macroeconomic conditions;
- Additional tax liabilities or increased reserves on the recoverability of tax receivables:
- Operational interruptions related to union work stoppages;
- Volatility in foreign currency exchange rates and limitations on our ability to convert foreign currency to U.S. dollars;
- Changes in, and inconsistent enforcement of, laws and regulations in countries where we operate, including those related to tariffs and taxes;
- Compliance risks;
- Crime and security concerns, which can adversely affect the economies of the countries in which we operate and which require us to incur additional costs to provide additional security at our warehouse clubs;
- Recoverability of moneys owed to PriceSmart from governments in countries where we do business;
- The possibility of operational interruptions related to union work stoppages;
- Political instability, such as recent unrest in Honduras, the ongoing anti-government protests in Nicaragua that have disrupted our operations there, and a general strike in Costa Rica led by public-sector unions that disrupted normal commerce in September 2018; and
- Any substantial reduction by the U.S. government of aid to Guatemala, Honduras, El Salvador or Nicaragua could adversely impact our sales and our ability to receive timely tax refunds owed to us by some of these countries and could lead to further political instability.
Internal Risks:
- A failure to timely identify and respond to changes in consumer shopping preferences could adversely affect our sales and market share;
- Significant competition, including from international online retailers;
- Limitations on the availability of appropriate sites for new warehouse clubs could adversely affect growth;
- Delays in the opening of planned new warehouse clubs could adversely affect growth;
- Increased costs due to delays or failure in our efforts to integrate our online commerce with our traditional brick and mortar business;
- Acquisitions, such as our acquisition of Aeropost, Inc. in March 2018, may expose us to additional risks;
- Cost increases from product and service providers;
- Interruption of supply chains, which might adversely impact on our ability to import merchandise;
- Failure to maintain our brand's reputation;
- Exposure to product liability claims and product recalls;
- Failure to maintain our computer systems and/or disruption in those systems;
- Any failure to maintain the security of the information we hold relating to our company, our members, employees and suppliers;
- Failure to manage our chief executive officer transition, failure to attract and retain other qualified employees, increases in wage and benefit costs, or changes in laws and other labor issues could materially adversely effect on our financial performance;
- Changes in accounting standards affecting management's financial assumptions, projections, estimates and judgments; and
- A few of our stockholders own approximately 25.0% of our voting stock as of August 31, 2018, which may make it difficult to complete some corporate transactions without their support and may impede a change in control.
The risks described above as well as the other risks detailed in the Company's U.S. Securities and Exchange Commission ("SEC") reports, including the Company's Annual Report on Form 10-K filed for the fiscal year ended August 31, 2018 filed on October 25, 2018, pursuant to the Securities Exchange Act of 1934, see "Part I - Item 1A - Risk Factors," could materially and adversely affect our business, financial condition and results of operations. These risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the U.S., as well as other risks that are not presently known to the Company or that the Company currently considers to be immaterial.
For further information, please contact Maarten O. Jager, Principal Financial Officer and Principal Accounting Officer (858) 404-8826.
SOURCE PriceSmart, Inc.
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