PriceSmart Q3 Profit Down - Update

(RTTNews) - Discount warehouse clubs operator PriceSmart Inc. (PSMT), Thursday reported a slight drop in profit for the second quarter, as higher operating costs more than offset a double-digit sales growth.

San Diego, California-based PriceSmart's third-quarter profit was $21.2 million or $0.70 per share, compared to $21.3 million or $0.70 per share a year ago. Analysts polled by Thomson Reuters estimated earnings of $0.72 per share for the quarter.

Total revenues for the third quarter rose to $697.1 million from $615.0 million a year earlier. Analysts had a consensus revenue estimate of $687.62 million for the quarter.

Net warehouse club sales increased 13 percent to $675.3 million from $597.9 million a year ago. The company had 36 warehouse clubs in operation as of May 2015 compared to 33 warehouse clubs a year ago.

Total operating costs for the quarter rose to $663.6 million from $583.8 million a year ago.

For June 2015, the company reported net warehouse club sales increase of 11.8 percent to $217.2 million from $194.3 million a year ago.

PSMT closed Thursday's trading at $91.86, down $0.16 or 0.17%, on the Nasdaq. The stock further dropped $0.37 or 0.40% in after-hours trade.