By Kathryn Hardison
PriceSmart Inc. said its fiscal third-quarter profit fell as the company faces ongoing supply chain disruptions and shifts in consumer demand that has left it with excess inventory.
The owner and operator of shopping warehouse clubs in Latin America and the Caribbean said third-quarter net income was $19.3 million, or 62 cents a share, compared with $22.5 million, or 73 cents a share, a year ago. Analysts polled by FactSet expected earnings of 80 cents a share.
Revenue rose 15% to $1.03 billion, compared with $895.3 million a year ago. Analysts expected $952 million.
Comparable net merchandise sales rose almost 13%. Net merchandise sales rose 16.5% to $999 million from $857.5 million a year ago.
Chief Executive Officer Sherry Bahrambeygui said the company is attempting to offload excess inventory with price markdowns as consumers shift their spending away from discretionary products. Many retailers across the industry are dealing with piling inventory of products that were in high-demand at the height of the pandemic.
The company has also faced supply chain disruptions in the recent quarter, such as Asia port closures due to Covid-19, container shortages and higher freight and fuel costs, Ms. Bahrambeygui said.
The San Diego-based company had 50 clubs in operation as of May 31.
Write to Kathryn Hardison at [email protected]
