PriceSmart, Inc. (PSMT) Income Statement

The revenue trajectory shows consistent acceleration through 2025 and into 2026, with growth rates climbing from the mid-single digits (5.6% in 2025Q2) to the low double digits (13.9% in 2026Q4). This acceleration appears to outpace peer BJ's Wholesale (4.7% one-year growth) and even Costco (8.2%), which may indicate PSMT is capturing market share in under-penetrated geographies rather than merely benefiting from category tailwinds. The durability of this growth trend warrants monitoring, as discount retailers in emerging markets can face currency headwinds that obscure underlying organic volume strength.

The structural gross margin of approximately 17.4% reflects PSMT's membership fee income embedded in the revenue line, a model characteristic shared with BJ's but absent at Costco where membership fees are reported separately. This accounting presentation inflates apparent gross margins relative to pure merchandise retailers, meaning the underlying merchandise margin is likely thinner than the headline figure suggests. The 2026Q4 gross margin of 49.7%—driven by COGS falling to $762.4M from $1.2B in prior quarters—appears to reflect a classification change or data anomaly rather than a fundamental improvement in pricing power, and analysts should verify this against the company's actual 10-K filing before drawing conclusions.

Operating margin has fluctuated in a narrow 3.7%–5.1% band, with the strongest margins appearing in mid-year quarters (5.1% in 2026Q2, 4.9% in 2025Q2) and weaker margins in holiday quarters when promotional activity intensifies. This seasonality is typical for warehouse clubs but indicates that PSMT's cost structure is not yet achieving the fixed-cost absorption benefits seen at more mature operators like Costco. The negative SBC figure of -$16.1M in 2026Q4 (versus positive $5.6M in 2026Q3) is unusual and may reflect a share-based compensation reversal or accounting adjustment—investors should seek clarity as this item materially affects the quality of that quarter's operating income.

The absence of R&D expense is consistent with a retail warehouse model and is not a concern, but the consistent SG&A ratio masks the fact that PSMT is absorbing the fixed costs of new warehouse openings before those locations reach mature productivity—a dynamic that typically depresses margins for 12–24 months post-opening. Compared to BJ's, which operates at a 3.9% operating margin on 18.6% gross margin, PSMT's roughly comparable operating margin on a lower gross margin base suggests its overhead efficiency is competitive, though this may reflect a smaller store base that has not yet required the corporate infrastructure investments of larger peers.