PriceSmart Reports Strong Q1 Results and New Costa Rica Club Opening Plans

PriceSmart's Strong Financial Performance in Q1 2026

PriceSmart, Inc., a prominent operator of warehouse clubs across Latin America and the Caribbean, unveiled its first-quarter financial results for fiscal 2026 on January 7, 2026. The report reveals a robust revenue growth of nearly 10% compared to the previous year, driven by a consistent increase in merchandise sales and a significant operational expansion.

Financial Highlights

In the first quarter of fiscal year 2026, which concluded on November 30, 2025, PriceSmart achieved total revenues of $1.38 billion, marking a 9.9% increase from the $1.26 billion reported for the same period last year. Net merchandise sales specifically increased by 10.6%, soaring to $1.35 billion from $1.22 billion in the prior year. Notably, the favorable exchange rate fluctuations contributed an additional $13.8 million to the overall merchandise sales.

The comparable net merchandise sales of PriceSmart’s 54 clubs, which have been operational for more than 13.5 months, rose by 8% during the same period. These results underscore the company's steady performance amidst increasing competition and market shifts in the retail sector.

Another noteworthy aspect of PriceSmart's report is the improved operating income, which increased from $58.3 million in the previous year to $62.9 million. Correspondingly, net income also saw an increase, totaling $40.2 million, or $1.29 per diluted share, up from $37.4 million, or $1.21 per share, in the same quarter last year. Adjusted EBITDA for this quarter was reported at $86.9 million, reflecting a strong growth trajectory as compared to $79.1 million last year.

Strategic Expansion Plans

In addition to solid financial performance, PriceSmart has ambitious expansion plans. The company announced the purchase of land for its tenth warehouse club, which will be situated in Ciudad Quesada, Costa Rica. This new facility, set to break ground soon, spans six acres and is expected to open in fall 2026. This opening is part of PriceSmart's broader strategy to enhance its footprint, aiming to operate a total of 60 warehouse clubs across its markets.

PriceSmart is also set to open additional clubs in the Dominican Republic and Jamaica in the forthcoming year, illustrating its commitment to growth in the region and the desire to better serve its customer base.

Growth Dynamics

The company indicated that its growth was not just about opening new locations. Emphasis on customer experience, product quality, and competitive pricing strategies have played integral roles in fostering loyalty among its members. As PriceSmart continues to expand, it aims to strengthen its brand's reputation and accessibility to a wider customer demographic.

In conclusion, PriceSmart’s recent quarterly report showcases its successful operational strategies and forward-thinking initiatives aimed at growth and enhancement in customer satisfaction. The developments in Costa Rica represent the company's ongoing commitment to expanding its footprint in key markets, further solidifying its position as a leader in the membership-based retail space in Latin America and the Caribbean.