PriceSmart Jumps 5% as Strong Sales Overshadow Minor EPS Miss

PriceSmart (NASDAQ:PSMT) shares gained 5% on Friday after the company delivered stronger-than-expected third-quarter revenue, reinforcing investor confidence despite a slight earnings miss.

The warehouse club operator reported revenue of $1.32 billion for the quarter—slightly above the $1.3 billion analyst consensus and up 7.1% from a year earlier. Earnings per share landed just under expectations at $1.14 versus the anticipated $1.15, but net income still rose 8.2% year-over-year to $35.2 million.

Sales momentum remained solid across the board. On a constant currency basis, net merchandise sales jumped 9.5%, while comparable store sales for clubs open more than 13½ months climbed 7%, or 8.5% adjusted for currency fluctuations. Foreign exchange continued to be a headwind, shaving 1.5% off merchandise sales.

Despite the minor EPS shortfall, the overall performance pointed to strong underlying demand and operational stability, reassuring investors and fueling a double-digit rally in the stock.