Warehouse clubs operator PriceSmart, Inc. (PSMT) reported Friday a drop in profit for the first quarter ended November 30, despite a 3.4% growth in warehouse club sales. The earnings decline primarily reflected the absence of a benefit to tax expense recorded in the first quarter of fiscal 2009. The company also reported an 8% increase in December sales as comparable warehouse sales for the four weeks ended December 27 rose 3.5% from the past year.
For the first quarter, net income attributable to PriceSmart dipped to $10.37 million or $0.35 per share from $10.69 million or $0.36 per share in the previous year. The results of the prior-year quarter included a $1 million benefit to tax expense during that prior period.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share in the first quarter. Analysts' estimate typically excludes special items.
Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates rose to $15.82 million from $14.44 million.
Total revenues for the quarter grew to $315.42 million from $305.21 million. Four analysts were expecting revenue of $315.99 million in the first quarter.
Net warehouse club sales improved 3.4% to $308.65 million from $298.52 million, while membership income increased to $4.65 million from $4.32 million in the year-ago quarter.
PriceSmart's operating income increased year-over-year to $16.24 million from $14.91 million. The company noted that it operated 26 clubs as of November 30, 2009, compared to 25 warehouse clubs a year earlier.
Further, the company announced that December 2009 net sales advanced 8% to $152.1 million from $140.8 million in the past year. For the four weeks ended December 27, 2009, comparable warehouse sales increased 3.5% compared to the prior-year period.
PSMT is currently trading at $20.00, down $0.13 or 0.65%, on the NASDAQ.
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