Subscription warehouse club PriceSmart (NASDAQ:PSMT) posted quarterly earnings results on Thursday, July 7, that were marked by a sharp drop in profits and weak sales growth.
PriceSmart logo PriceSmart Inc. (NASDAQ:PSMT) announced its quarterly earnings results on Thursday. The company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.70 by $0.15.
PriceSmart logo PriceSmart's (NASDAQ:PSMT) same-store sales decreased by 3.4% in the month of June. The company missed analysts' expectations of a 2% year-over-year decline in sales.
Meanwhile, PriceSmart's membership renewal rate dropped to 81% this quarter from 86% over the prior 12 months. Excluding the Colombian stores, though, the rate actually ticked up to 88%.
What: PriceSmart (NASDAQ:PSMT) stock fell by 12% during the month of August, according to S&P Capital IQ data. The dip put shares of the warehouse club at a 10% loss through the first eight months of 2015 and an 8% drop over the last full year.
PriceSmart added three new clubs in that country, and Colombia was responsible for nearly half of the total revenue improvement for the company in fiscal 2015.
PriceSmart Inc. (NASDAQ:PSMT) has a Return on Assets of 9.16%. To compare, the S&P 500 oscillates between 1% and 4%. Return on assets measures the amount of after tax income the company generates for every one dollar in assets.
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