PriceSmart Reveals Q3 FY2025 Results and Eyes Chile for New Expansion

PriceSmart Reports Strong Q3 FY2025 Results and Plans for Chile Expansion

PriceSmart, Inc., the operator of warehouse clubs across Latin America and the Caribbean, recently disclosed its operating results for the third quarter of fiscal year 2025, revealing significant growth in both revenues and merchandise sales. With total revenues increasing by 7.1% year-over-year, the company continues to strengthen its position in the market while exploring potential new locations for expansion.

Fiscal Q3 2025 Highlights

According to PriceSmart's announcement, the company's total revenues for the third quarter reached $1.32 billion, up from $1.23 billion reported during the same quarter last year. Notably, net merchandise sales surged by 8.0% to $1.29 billion, compared to $1.19 billion in Q3 FY2024. This impressive growth showcases PriceSmart's resilience amidst fluctuating foreign currency exchange rates, which negatively affected sales by approximately $18.6 million or 1.5% compared to the prior year.

As of May 31, 2025, PriceSmart operated 55 warehouse clubs, an increase from 54 clubs the previous year. The comparable net merchandise sales for these clubs rose by 7.0%, demonstrating consistent performance across established locations. Additionally, on a constant currency basis, the growth in comparable sales rose even higher, reaching 8.5% for the 13-week period ending June 1, 2025.

Year-to-Date Performance

Considering the fiscal year thus far, PriceSmart has reported total revenues of $3.94 billion for the nine months ended May 31, indicating a growth of 6.8% compared to $3.69 billion during the same period last year. The net merchandise sales for the year-to-date were also up by 7.2%, equating to $3.85 billion. Adjusted EBITDA for the first nine months of FY2025 reached $245.1 million, reflecting a gradual increase from $232.9 million in the prior year.

New Market Opportunities in Chile

In an exciting development, PriceSmart announced its plans to evaluate Chile as a potential new market for warehouse clubs. The company is proactive in its approach, currently hiring local consultants to explore suitable locations for new club openings in the region. However, the expansion hinges on various factors such as site availability, ongoing market analysis, and obtaining necessary government permits.

Management emphasizes that any move into new regions requires meticulous planning and adherence to local regulations. This potential expansion underscores PriceSmart's commitment to growth and enhancing its market reach in the coming years.

Future Considerations

Despite the successes seen in recent quarters, PriceSmart remains vigilant in tracking the various risks associated with international operations, including economic fluctuations, changes in consumer spending behaviors, and competition within the retail sector. The impact of foreign currency exchange rates is a prevailing concern, which the company continues to monitor closely.

In light of these developments, PriceSmart will host a conference call on July 14, 2025, to further discuss its financial results and strategic outlook. Investors and market analysts are keen to learn more about the implications of the latest results and future expansions.

PriceSmart, headquartered in San Diego, operates 55 warehouse clubs across 12 countries and one U.S. territory, providing U.S.-style membership shopping to customers, characterized by high-quality merchandise at low prices. By continuously seeking new opportunities and overcoming the challenges posed by the global market, PriceSmart stands poised for sustained growth in the competitive retail landscape.