PriceSmart, Inc. Q2 FY2026 earnings call

• David Price noted strong second quarter with broad-based growth and all-time high membership renewal rate, thanked employees. Net merchandise sales and total revenue details. Growth across regions. Merchandise category highlights including foods, nonfood, food service/bakery, health services. Membership growth and renewal rate. Real estate expansion plans: 6 new clubs in various locations, warehouse expansions/remodels. Supply chain transformation: new distribution centers in Trinidad, plans for others, implementing platforms. Private label penetration increase, digital channel sales growth, mobile app migration, technology investments in point-of-sale and human capital management systems.

During the second quarter, net merchandise sales and total revenue reached almost $1.5 billion. Net merchandise sales increased by 9.9% or 7.8% in constant currency. Comparable net merchandise sales increased by 7.6% or 5.5% in constant currency. Central America: 32 clubs at quarter end, net merchandise sales increased 8.6% or 7.8% in constant currency, comparable net merchandise sales increased 4.7% or 4% in constant currency, contributing ~280 basis points to total consolidated comparable net merchandise sales growth. Caribbean: 14 clubs at quarter end, net merchandise sales increased 4.3% or 5.3% in constant currency, comparable net merchandise sales increased 4.2% or 5.1% in constant currency, contributing ~120 basis points. Colombia: 10 clubs at end of second quarter, net merchandise sales increased 30.5% or 13.8% in constant currency, comparable net merchandise sales increased 31.3% or 14.7% in constant currency, contributing ~360 basis points. Merchandise categories: Foods grew ~9.2%, fresh proteins standout with seafood, poultry, meat each >15% growth; nonfood increased ~12.4% with casual apparel and small appliances strong; food service and bakery ~12.2%; health services ~13%. Membership accounts grew 7.9% to almost 2.1 million with 90.2% 12-month renewal rate.

Risks related to global uncertainty like currency volatility, evolving trade policy, macroeconomic pressures. U.S. tariffs landscape evolving, monitoring developments. Potential impacts from military conflicts in Mid East on transportation costs, shipment/delivery delays. Fuel price increases in some markets impacting consumer demand.

Q: Jon Braatz asked about Chile store construction timeline and impact of remits and Mid East supply chain.

A: David Price said Chile store construction process not taking longer than other markets, conservative on announcements; no visible impact of remits on consumption; on Mid East, fuel costs changing, some supply chain delays but not significant yet.

Q: Héctor Maya López asked about drivers of higher gross margin, preparation for macro challenges in Central America and Caribbean, club opening dates, and Chile market learnings.

A: Gualberto Hernandez said gross margin improvement from mix shift and Asia consolidation efforts; Central America/Caribbean have natural protection with member profile; club openings accelerated due to earlier permits; Chile market learning about advanced infrastructure, digitalization, and consumer desire for international goods