PriceSmart Inc (NASDAQ: PSMT) is a warehouse club retail company that operates membership-based shopping clubs across Central America, the Caribbean, and Colombia. Revenue comes from two sources: net merchandise sales and membership fees collected from members who pay for access to the clubs. As of August 31, 2025, PriceSmart operated 56 warehouse clubs across 12 countries and one U.S. territory, making it the dominant warehouse club operator in its markets. The club format is built on a limited SKU count with large pack sizes, low occupancy costs, and distribution centers in multi-club markets to reduce operating expenses and improve in-stock rates. Net income for fiscal year 2025 was $147.9 million, or $4.82 per diluted share, and adjusted EBITDA was $320.7 million. Consolidated comparable net merchandise sales grew 6.7% for the 52-week period ended August 31, 2025. PriceSmart pays a regular dividend, with $1.26 per share declared in February 2025.

Revenue model

Dual revenue stream: net merchandise sales from warehouse club transactions and recurring annual membership fees. Membership fees were increased by $5 in all but one market during fiscal year 2024. A Platinum Membership tier offers cashback and additional benefits to high-engagement members. Online shopping at PriceSmart.com and club pickup and delivery services supplement in-club sales.

Products and services

General merchandise sold in large pack sizes through a limited SKU warehouse club format, including food, prepared food, fresh produce, medication, children's products, pet products, and durable goods. Ancillary services include optical services with free eye exams, affordably priced eyeglass frames, audiology services with hearing tests, competitively priced hearing aids, and pharmacy services in select markets.

Customers and end markets

Paid members with access to warehouse club locations. Membership targets consumers with strong purchasing power in Central American, Caribbean, and Colombian markets. Member renewal rates, membership base size, and average ticket are key operating metrics.

Value-chain role

Retailer and club operator. Sources merchandise from suppliers and distributes through its own warehouse clubs and distribution centers in multi-club markets. Packages and markets fresh produce within its markets. Operates PriceSmart.com for online order fulfillment with club pickup and delivery.

Geographic exposure

As of August 31, 2025: 10 clubs in Colombia, 9 in Costa Rica, 7 each in Panama and Guatemala, 5 in Dominican Republic, 4 each in Trinidad and El Salvador, 3 in Honduras, 2 each in Nicaragua and Jamaica, and 1 each in Aruba, Barbados, and the United States Virgin Islands. Three reporting segments: Central America, Caribbean, and Colombia. Colombia comparable net merchandise sales grew 11.8% for the 52-week period ended August 31, 2025. Currency fluctuations had an 80 basis point negative impact on consolidated comparable net merchandise sales for the same period.

Source: SEC 10-K, filed 2025-10-30

Industry: Retail-Variety Stores Peers: BJ's Wholesale Club Holdings Inc Costco Wholesale Corp Walmart Inc