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PriceSmart Continues to Witness Soft Sales Numbers in May
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PriceSmart, Inc. (PSMT - Free Report) witnessed a decline in comparable net merchandise sales (comps) for the second straight month. Apparently, comps for the five weeks ended May 31, fell 6.7% for 41 warehouse clubs, following a decline of 19.2% in April. Comps in May were hurt by foreign currency fluctuations to the tune of $6.7 million or 2.4%.
Net merchandise sales during the month under review declined 1.9% to $246.3 million from $251 million a year ago. The company saw a plunge of 10.9% in the metric during the month of April. Currency-rate fluctuations negatively impacted the metric by $6.1 million or 2.5% in May. During the month under review, the company continued to witness limitations with respect to serving its members owing to closures or other restrictions in the wake of COVID-19. Management informed that many governments across the company’s markets are experimenting relaxation in the restrictions for June.
Moreover, the company has been working to brave such challenges and is evaluating ways for convenient shopping. Impressively, management rolled out the 'Click and Go' program across most of its clubs across 11 of the company’s 13 markets by May-end. The latest program enables consumers to shop and place orders online and then pick up at club. In June, the program is expected to be rolled out in the remaining countries. The company has been boosting online capabilities. In addition, its Assisted Shopping Program provides product information online as well as helps deliver orders quickly. These initiatives are minimizing human-to-human contact and in turn containing the spread of the virus.
Encouragingly, net merchandise sales grew 4.1% to $2,418.8 million for the fiscal till May 31. The metric was hurt by foreign currency fluctuations to the tune of $34.4 million or 1.5%. However, comps decreased 0.7% from the year-ago period for the 39-week period ended May 31. The metric was also hurt by foreign currency fluctuations to the tune of $33 million or 1.4%.
Over the past three months, shares of this membership shopping warehouse club operator have risen 14.3%, outperforming the industry’s rise of 7.4%.
SpartanNash (SPTN - Free Report) , also a Zacks Rank #1 stock, has a positive earnings surprise of 76.3% for the last reported quarter.
Office Depot (ODP - Free Report) has a long-term earnings growth rate of 6.8%. Currently, it carries a Zacks Rank #2 (Buy).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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PriceSmart Continues to Witness Soft Sales Numbers in May
PriceSmart, Inc. (PSMT - Free Report) witnessed a decline in comparable net merchandise sales (comps) for the second straight month. Apparently, comps for the five weeks ended May 31, fell 6.7% for 41 warehouse clubs, following a decline of 19.2% in April. Comps in May were hurt by foreign currency fluctuations to the tune of $6.7 million or 2.4%.
Net merchandise sales during the month under review declined 1.9% to $246.3 million from $251 million a year ago. The company saw a plunge of 10.9% in the metric during the month of April. Currency-rate fluctuations negatively impacted the metric by $6.1 million or 2.5% in May. During the month under review, the company continued to witness limitations with respect to serving its members owing to closures or other restrictions in the wake of COVID-19. Management informed that many governments across the company’s markets are experimenting relaxation in the restrictions for June.
Moreover, the company has been working to brave such challenges and is evaluating ways for convenient shopping. Impressively, management rolled out the 'Click and Go' program across most of its clubs across 11 of the company’s 13 markets by May-end. The latest program enables consumers to shop and place orders online and then pick up at club. In June, the program is expected to be rolled out in the remaining countries. The company has been boosting online capabilities. In addition, its Assisted Shopping Program provides product information online as well as helps deliver orders quickly. These initiatives are minimizing human-to-human contact and in turn containing the spread of the virus.
Encouragingly, net merchandise sales grew 4.1% to $2,418.8 million for the fiscal till May 31. The metric was hurt by foreign currency fluctuations to the tune of $34.4 million or 1.5%. However, comps decreased 0.7% from the year-ago period for the 39-week period ended May 31. The metric was also hurt by foreign currency fluctuations to the tune of $33 million or 1.4%.
Over the past three months, shares of this membership shopping warehouse club operator have risen 14.3%, outperforming the industry’s rise of 7.4%.
Key Picks in Retail
Sprouts Farmers Market (SFM - Free Report) has a trailing four-quarter positive earnings surprise of 37.2% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SpartanNash (SPTN - Free Report) , also a Zacks Rank #1 stock, has a positive earnings surprise of 76.3% for the last reported quarter.
Office Depot (ODP - Free Report) has a long-term earnings growth rate of 6.8%. Currently, it carries a Zacks Rank #2 (Buy).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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