PriceSmart posts mixed performance in third quarter, clears $75 million share buyback

PriceSmart Inc PSMT posted a 6.4% year-over-year revenue increase to $1.097 billion in the third quarter of FY2023, slightly beating consensus of $1.1 trillion dollars.

Net merchandise sales increased 7.1% YoY (+5.6% YoY in constant currency) to $1.07 billion, as fluctuations in exchange rate having a positive impact of $14.9 million.

Comparable merchandise net sales for the 49 warehouse clubs, open for more than 13.5 calendar months, increased 5.8% for the 13 weeks ending June 4, 2023 .

Adjusted EBITDA was $63.2 million versus $51.3 million a year ago.

Adjusted EPS of $1.02 topped consensus of $0.85.

As of May 31, 2023, cash and cash equivalents were $338.3 million.

Buyback: PSMT authorized a stock buyback of up to $75 million during the quarter.

As of May 31, 2023, the company had 51 operating warehouse clubs compared to 50 the previous year.

Price Action: PSMT shares closed down 5.06% at $73.00 after hours on Monday.

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