Retail warehouse stores operator, PriceSmart, Inc. (PSMT), recently reported net sales and comparable sales figures for the month of Sep 2013.
Sep 2013 Results
Net warehouse club sales grew 11.0% to $185.3 million for the month. Further, PriceSmart reported 9.1% year-over-year increase in comparable warehouse sales (comps) for 29 warehouse clubs for the four weeks ended Sep 29, 2013. PriceSmart’s September comps were better than the 8.9% growth seen in August and were in line with the 9%+ growth witnessed every month since April this year. Though comps are better than the slow growth witnessed in the first three months of the calendar year, they are still below PriceSmart’s past trend of double-digit growth.
PriceSmart is involved in the operation of membership shopping warehouses in international markets. It had 31 warehouse clubs in operation at the end of Sep 2013.
PriceSmart sells good-quality basic consumer products at affordable prices. Slow economic recovery and low employment levels have led the consumers to shy away from high-priced brands. The company has, thus, been able to reap the benefits of this recent trend with its lower-priced brands and the private-label merchandise.
PriceSmart is due to report fourth-quarter and fiscal 2013 results on Oct 30. The Zacks Consensus Estimate stands at 67 cents for the fourth quarter and $2.78 for the full year, representing approximately 15% and 24% growth rate, respectively.
Other Stocks to Consider
PriceSmart carries a Zacks Rank #3 (Hold). Other stocks in the retail/discount industry that are worth considering include The TJX Companies, Inc (TJX), Ross Stores Inc. (ROST) and Dollar General Corporation (DG). All these companies carry a Zacks Rank #2 (Buy).