PriceSmart Inc tumbles after Q3 profit falls

PriceSmart

11/07/2022 22:45

** Shares of warehouse club chain PriceSmart Inc  PSMT.O 
down ~5% at $68.75 after the bell 
    ** PSMT's Q3 net income attributable to the company fell
to$19.3 mln, or 62 cents per share, from $22.5 mln, or 73 cents
per share, a year earlier 
    ** CEO Sherry Bahrambeygui says inflation has influenced
consumer behavior by shifting the demand away from discretionary
and toward more essential items resulting in excess inventory,
primarily in the area of hardlines
    ** Bahrambeygui adds PSMT is likely to see some margin
pressure in Q4 as the company takes actions to handle higher
than normal markdowns
    ** However, Q3 total revenue rose 15.1% to $1.03 bln and
during the qtr had 50 warehouse clubs in operation, compared to
47, a year earlier
    ** Up to Monday's close, stock had fallen marginally 

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam))