PriceSmart, Inc. (PSMT) Income Statement

The sequential acceleration from 9.7% in 2026Q2 to 12.5% in 2026Q3 indicates strengthening sales momentum, likely driven by membership growth and higher comparable sales. This trend appears durable as it builds on a base of consistent mid-single-digit to low-double-digit growth over the past two years, with no signs of deceleration.

The stability of gross margin at 17.7% in 2026Q1-Q3, up from 17.1% in 2024Q2, suggests that PriceSmart has maintained pricing power and cost control. This is particularly notable given the competitive discount retail landscape, and it may indicate efficient supply chain management or favorable product mix shifts.

SG&A expenses increased by roughly 10% year-over-year in 2026Q3, while revenue grew 12.5%, allowing operating income to expand faster than sales. This suggests that PriceSmart is scaling its fixed cost base effectively, though the absolute operating margin remains thin, leaving limited buffer against cost shocks.

The cost structure is typical for a discount retailer, with COGS being the dominant expense. SG&A has grown at a slower pace than revenue, indicating management's focus on controlling overhead. However, any significant increase in input costs or wage inflation could compress margins, given the already low operating margin of around 4-5%.

The dramatic EPS jump in 2025Q4, from a -$3.63 loss in 2024Q4, indicates a recovery from a one-time impairment or charge. This inflection appears to have been driven by improved operational efficiency and revenue growth, setting a higher base for subsequent quarters. The sustainability of this improvement is supported by continued margin stability and revenue acceleration in 2026.