PriceSmart Q2 Profit Drops - Update

(RTTNews) - Discount warehouse clubs operator PriceSmart Inc (PSMT), Thursday reported a drop in profit for the second quarter despite a double-digit sales increase, after its bottom line was hit by devaluation of the Colombian peso.

San Diego, California-based PriceSmart's second quarter profit dropped to $24.8 million or $0.82 per share from $28.3 million or $0.93 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude one-time items.

Chief Executive Jose Luis Laparte said, "While many of our markets performed well in the quarter, the reduction in net income can be attributed to Colombia where various factors, most notably the devaluation of the Colombian peso, led to a year on year reduction of net income and negatively impacted the consolidated results of the Company by approximately $0.16 per share."

Total revenues for the second quarter rose to $750.3 million from $674.4 million last year. Analysts had a consensus revenue estimate of $741.43 million for the quarter.

Net warehouse club sales for the quarter increased 11.4 percent to $732.1 million. The company had 36 warehouse clubs in operation as of February 2015, up from 32 clubs last year.

Total operating expenses for the quarter rose to $708.6 million from $635.0 million last year.

PSMT closed Thursday's trading at $85.24, up $0.14 or 0.16%, on the Nasdaq. The stock, however, dropped $1.84 or 2.16% in the after-hours trade.