• PriceSmart reported an earnings per share (EPS) of $1.29, slightly above estimates, with revenue reaching approximately $1.38 billion.
• The company's net merchandise sales grew by 10.6%, with comparable net merchandise sales rising by 8.0%.
• Shares have risen by nearly 40% over the past year, trading at 23 times forward earnings, indicating a favorable valuation compared to Costco.

PriceSmart, Inc. (NASDAQ: PSMT) is a prominent warehouse club operator, known for its extensive network of 56 clubs across 12 countries and one U.S. territory. The company competes with industry giants like Costco, yet it maintains a unique market position by focusing on underpenetrated regions. PriceSmart's recent earnings report for the fiscal first quarter of 2026 highlights its strong financial performance.

On January 7, 2026, PriceSmart reported an earnings per share (EPS) of $1.29, slightly above the estimated $1.28. The company's revenue reached approximately $1.38 billion, surpassing the forecasted $1.36 billion. This represents a 9.9% increase from the previous year's $1.26 billion, showcasing PriceSmart's ability to exceed market expectations and deliver consistent growth.

PriceSmart's net merchandise sales grew by 10.6%, reaching $1.35 billion, up from $1.22 billion in the first quarter of fiscal year 2025. Comparable net merchandise sales also rose by 8.0%. Foreign currency exchange rate fluctuations contributed an additional $13.8 million, or 1.1%, to net merchandise sales, highlighting the company's resilience in navigating currency challenges.

The company's shares have risen by nearly 40% over the past year, trading at 23 times forward earnings, which is considered a discount compared to Costco. PriceSmart's price-to-earnings (P/E) ratio is approximately 25.92, while its price-to-sales ratio and enterprise value to sales ratio both stand at about 0.74. These metrics indicate a favorable valuation relative to its sales and earnings.

PriceSmart's financial health is further supported by a low debt-to-equity ratio of approximately 0.14 and a current ratio of around 1.33, indicating strong liquidity. The enterprise value to operating cash flow ratio is approximately 13.51, reflecting the company's ability to cover its enterprise value with operating cash flow. With plans to expand in Costa Rica, PriceSmart continues to demonstrate growth potential in underpenetrated markets.