PriceSmart (NASDAQ:PSMT) unveiled its latest quarterly earnings results late today, bringing in a profit that failed to impress as it declined when compared to the year-ago quarter, playing a role in the company’s stock sinking nearly 10% after hours Wednesday.
The San Diego, Calif.-based operator of membership warehouse clubs announced that its net income attributable to the company experienced a decline of about 25% when compared to the year-ago quarter, coming in at $14.1 million, which is roughly 46 cents per share. The bottom line was in line with the Wall Street consensus estimate, although the top line missed the guidance.
PriceSmart was negatively impacted by higher costs that are connected with investments to expand its omnichannel capabilities, as well as its net operating results of the Aeropost legacy business. The company added that its net sales decreased roughly 0.8% when compared to the year-ago quarter, which tallied in to $788.6 million.
The business added that its net merchandise sales increased about 0.6% as foreign currency exchange rate fluctuations played a negatively role in sales by about 3.7%. As of May 31, 2019, PriceSmart has 42 clubs in operation.
PSMT stock is sinking about 9.5% after the bell Wednesday following the company’s underwhelming quarterly earnings results. Shares had been gaining about 3.3% during regular trading hours today as PriceSmart geared up to report its figures for its latest three-month period.