PriceSmart Reports 5.2 Pct Rise In January Net Merchandise Sales

PriceSmart, Inc. said on Friday (Feb. 5) that net merchandise sales climbed 5.2 percent to reach $267.1 million for the month of January 2021, up from $254 million in January 2020, according to an announcement.

The warehouse club company said that fluctuations in the foreign currency exchange negatively hit net merchandise sales by 3.5 percent ($8.9 million) in contrast to the same one-month timeframe in the past year.

“In January, net merchandise sales and comparable net merchandise sales grew despite a surge in COVID cases and increased COVID-related restrictions in some of our markets. Consolidated comparable sales increased in January, but were partially offset by declines in Colombia and Trinidad,” Chief Executive Officer Sherry S. Bahrambeygui said in the announcement. The executive also noted that the company lost roughly 70 club days in January amid the ongoing pandemic.

Comparable net merchandise sales for the 45 locations that have been open a minimum of 13.5 months climbed 2.8 percent between the four weeks that concluded Jan. 24, 2021 and the same timeframe in 2020. The company said that foreign currency exchange rate changes negatively hit comparable net merchandise sales by 3.3 percent or $7.7 million compared to the same year-ago period.

PriceSmart, which is based in California, runs 47 warehouse clubs in 12 nations and a single U.S. territory. It intends to bring new warehouse clubs to Bucaramanga, Colombia and Guatemala City this autumn, and to Portmore, Jamaica next year. After those three new clubs open, the company will run a total of 50 warehouse clubs.

The news comes as PriceSmart, Inc. reported as part of its Q1 fiscal 2021 operating results that net merchandise sales rose 7.7 percent to $838.4 million from $778.7 million in Q1 fiscal 2020.

“PriceSmart delivered solid results for the first quarter of the fiscal year 2021. In November, mobility restrictions were reduced in many of our markets. We meanwhile expanded our Click and Go contactless shopping program, which provides for ordering online and curbside pickup, and as of Q1, includes delivery options in all of our markets,” Bahrambeygui said in an announcement in January.