PriceSmart Making Money Hand Over Fist in St. Thomas
PriceSmart on St. Thomas
CHARLOTTE AMALIE – PriceSmart, Inc. today announced that for the month of August 2015 net sales increased 12.6% to $232.7 million, from $206.7 million in August a year earlier. For the twelve months ended August 31, 2015, net sales increased 11.3% to $2,721.1 million from $2,444.3 million for the twelve months ended August 31, 2014. There were 37 warehouse clubs in operation at the end of August 2015 and 33 warehouse clubs in operation at the end of August 2014.
For the five weeks ended August 30, 2015, comparable warehouse sales for the 33 warehouse clubs open at least 13 1/2 full months increased 3.0%, compared to the same five-week period last year. For the fifty-two week period ended August 30, 2015, comparable warehouse sales increased 2.7%, compared to the same fifty-two week period a year ago.
PriceSmart plans to release fourth quarter fiscal year 2015 financial results on Thursday, October 29, 2015, after the market closes. PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00a.m. Pacific time) on Friday, October 30, 2015, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (888) 471-3840 toll free, or (719) 325-2204 for international callers and entering participant code 7637863. A digital replay will be available through November 30, 2015, following the conclusion of the call by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and entering replay passcode 7637863.
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 37 warehouse clubs in 12 countries and one U.S. territory (six each in Costa Rica, and Colombia; five in Panama, four in Trinidad; three each in Guatemala, the Dominican Republic, and Honduras; two in El Salvador; and one each in Aruba, Barbados, Jamaica, Nicaragua and the U.S. Virgin Islands).
This news may contain forward-looking statements concerning PriceSmart’s anticipated future revenues and earnings, adequacy of future cash flow, proposed warehouse club openings, the company’s performance relative to competitors, the outcome of tax proceedings and related matters. 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.
PriceSmart’s statements are subject to risks and uncertainties that could cause actual results to differ materially, including the following risks: our financial performance is dependent on international operations, which exposes us to various risks; any failure by us to manage our widely dispersed operations could adversely affect our business; we face significant competition; future sales growth depends, in part, on our ability to successfully open new warehouse clubs; we might not identify in a timely manner or effectively respond to changes in consumer preferences for merchandise, which could adversely affect our relationship with members, demand for our products and market share; although we have begun to offer limited online shopping to our members.
PriceSmart said its sales could be adversely affected if one or more major international online retailers were to enter our markets or if other competitors were to offer a superior online experience; we face difficulties in the shipment of, and inherent risks in the importation of, merchandise to our warehouse clubs; we are exposed to weather and other natural disaster risks; general economic conditions could adversely impact our business in various respects; we are subject to risks associated with possible changes in our relationships with third parties with which we do business, as well as the performance of such third parties; we rely extensively on computer systems to process transactions, summarize results and manage our business, and failure to adequately maintain our systems or disruptions in our systems could harm our business and adversely affect our results of operations; we could be subject to additional tax liabilities; a few of our stockholders own approximately 28.1% of our voting stock as of August 31, 2014.
PriceSmart is smart, but not that smart, which may make it difficult to complete some corporate transactions without their support and may impede a change in control; our inability to develop and retain existing key personnel or to attract highly qualified employees could adversely impact our business, financial condition and results of operations; we are subject to volatility in foreign currency exchange rates; we face the risk of exposure to product liability claims, a product recall and adverse publicity; if we do not maintain the privacy and security of confidential information, we could damage our reputation, incur substantial additional costs and become subject to litigation; we are subject to payment related risks; changes in accounting standards and assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations; we face increased public company compliance risks and compliance risks related to our international operations; we face increased compliance risks associated with compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
PriceSmart disavows any prior knowledge of remediation costs or hazardous substance contamination levels at certain unnamed properties for which it maintains financial responsibility exceed management’s current expectations, our financial condition and results of operations could be adversely impacted. In addition to the risks described above, these statements are also subject to 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, 2014 filed on October 30, 2014 pursuant to the Securities Exchange Act of 1934. We assume no obligation and expressly disclaim any duty to update any forward- looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.