What PriceSmart (PSMT)'s Strong Q1 Results and New Club Expansion Plan Means For Shareholders

• PriceSmart, Inc. has released its fiscal first-quarter 2026 results, reporting net income of US$40.2 million, earnings of US$1.29 per share, and revenue of US$1.38 billion from its 56 warehouse clubs across 12 countries and one U.S. territory.
• The company also highlighted 8.0% comparable net merchandise sales growth and outlined plans to expand to 60 clubs, including a tenth location in Costa Rica, underscoring continued emphasis on club rollouts in existing markets.
• Next, we’ll examine how this earnings performance and planned Costa Rica expansion could influence PriceSmart’s existing investment narrative and longer-term outlook.

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PriceSmart Investment Narrative Recap

To own PriceSmart, you need to believe in the long term appeal of its membership warehouse model across Central America, the Caribbean and Colombia, and in its ability to grow clubs while managing FX and logistics complexity. The latest quarter’s US$40.2 million net income on US$1.38 billion of revenue and 8.0% comparable net merchandise sales growth supports the near term club expansion catalyst, and does not materially change the key risk around FX headwinds and liquidity constraints in certain markets.

The most relevant recent announcement here is PriceSmart’s plan to grow from 56 to 60 warehouse clubs, including a tenth location in Costa Rica by fall 2026. This fits directly into the existing catalyst of accelerating club rollouts in current high income markets, which can expand the addressable base for memberships and merchandise sales, while also amplifying exposure to the existing risks of FX volatility and supply chain pressures if growth is not matched by operational efficiencies.

But while expansion into Costa Rica and other existing markets is encouraging, investors should still be aware of how persistent FX headwinds and liquidity constraints could...

Read the full narrative on PriceSmart (it's free!)

PriceSmart's narrative projects $6.9 billion revenue and $209.1 million earnings by 2028. This requires 10.1% yearly revenue growth and a $66.5 million earnings increase from $142.6 million.

Uncover how PriceSmart's forecasts yield a $120.00 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Five Simply Wall St Community fair value estimates for PriceSmart range from about US$886.9 million to US$8,869.2 million, showing just how far apart individual views can be. You can weigh these against the recent 8.0% comparable net merchandise sales growth and ongoing club rollout plans to consider how differing expectations about FX, margins and expansion might shape PriceSmart’s future performance.

Explore 5 other fair value estimates on PriceSmart - why the stock might be a potential multi-bagger!

Build Your Own PriceSmart Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PriceSmart research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free PriceSmart research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PriceSmart's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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