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PriceSmart (NASDAQ:PSMT) shares slipped in Monday’s extended session after reporting lighter than expected profits for its fiscal third quarter.
The discount retailer reported $0.62 in earnings per share, $0.20 below the analyst consensus, alongside $1.03B in revenue, which did surpass estimates by $78.13M.
CEO Sherry S. Bahrambeygui noted that inventory and inflation issues impacted the bottom line figure.
“Like many other retailers, we have not been spared the impact of global supply chain disruption and abrupt shifts in consumer demands,” she admitted.
Bahrambeygui explained that strategic investments made months in advance of the quarter were severely impacted by “global supply chain disruption, including Asia port closures due to COVID, container shortages, higher freight and fuel costs, [and] inflation” in tandem with “sharp changes” in consumer behavior. and sharp changes in consumer demands. She noted that negative trends are particularly hurting hardlines retail sales.
The executive indicated that the retailer is taking rapid action to right-size inventory levels. However, this entails significant markdowns that are likely to impact margins through the close of the fiscal year.
Shares fell 3.93% shortly after the reports crossed newswires.
Elsewhere, the company outlined plans to open a new warehouse club outside of San Salvador.
