The company’s board of directors decided on an annual cash dividend of $0.92 USD per share, which will be paid to the shareholders at the price of $0.46 per share on two separate dates this year, February 16 and August 15. The company also believes that they will be able to continue this semi-annual cash dividend payment in future periods, barring any “uncertain macroeconomic conditions” on the company.

“Driven by the strength of our business and cash flows from operations, the board of directors has increased the annual dividend by approximately 7.0%. We remain focused on accelerating our investments to drive growth, and we believe that our increase in the dividend reflects the board’s confidence in our club business model,” PriceSmart’s Interim Chief Executive Officer Robert Price commented. Robert Price founded PriceSmart with his father Sol Price, after the elder Price sold his chain of warehouse clubs to Costco in 1993.

After CEO Sherry Bahrambeygui resigned as CEO (but continues to serve on the board), board member and founding family member Robert Price stepped in as interim CEO. “I am excited to be re-engaging in the company’s day-to-day affairs again as the Interim Chief Executive Officer. I will not be receiving compensation in my role as Interim CEO, and I am looking forward to working with the other officers and leaders of the company to execute on our three major drivers of growth as we strive to improve the lives and businesses of our members, our employees and our communities through the responsible delivery of the best quality goods and services at the lowest possible price,” said Price.

The company’s annual shareholders meeting also ended up electing ten nominees for the open seats in PriceSmart’s board of directors. Sherry S. Bahrambeygui, Jeffrey R. Fisher, Gordon H. Hanson, Beatriz V. Infante, Leon C. Janks, Patricia Márquez, David N. Price, Robert E. Price, David R. Snyder, and Edgar Zurcher were elected as new board members.

After the annual shareholders meeting, the new board of directors expanded the number of seats from ten to eleven, and elected John D. Thelan to the newly created seat. Thelan recently retired from his position as Senior Vice President, Depots and Traffic of Costco Wholesale Corporation, a position he held since 1992.

“Additionally, I am excited to welcome John Thelan to the Board of Directors.  John’s extensive warehouse club experience at Costco, his expertise with operations and logistics and his experience with real estate transactions will be very beneficial to the Board and the operation of our clubs,” said Price.

Stockholders did not approve the compensation of the company’s executive officers for fiscal year 2022, but did approve an amendment to the company’s amended and restated 2013 Equity Incentive Award Plan to increase the number of shares of common stock available for the grant of awards by 750,000 shares and ratified the selection of Ernst & Young, LLP as the company’s independent registered public accounting firm for the fiscal year ending August 31, 2023.

Total revenues for the fourth quarter of fiscal year 2022 increased 12.3% to $1.02 billion compared to $909.6 million in the comparable period of the prior year. For the fourth quarter of fiscal year 2022, net merchandise sales increased 13.6% to $989.9 million from $871.2 million in the fourth quarter of fiscal year 2021. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $24.8 million, or 2.9%, versus the same period in the prior year.

Net merchandise sales grew 13.6%

“Our team delivered impressive results for the fourth quarter, with net merchandise sales finishing at $989.9 million and total revenues exceeding $1.0 billion for the quarter and $4.0 billion for the year. Net merchandise sales grew by 13.6%, after a negative 2.9% currency impact, and comparable net merchandise sales increased by 9.2%, after a negative 2.7% currency impact,” said Sherry S. Bahrambeygui, Chief Executive Officer.

“Our total membership base grew to a new record of 1.76 million accounts, representing growth of 5.5% versus last year. Our 12-month membership renewal rate was 88.9%, and our membership income for the fourth quarter was a record $15.6 million, an increase of 6.7% over the same period last year. We believe that these strong results and solid renewal rates demonstrate that our team is executing well on our unique club-focused business model and that our members are pleased with the value they are receiving.”

EPS grew 19% to 75 cents per share.

Comparable net merchandise sales for the 47 warehouse clubs that have been open for greater than 13 ½ calendar months increased 9.2% for the 14-week period ended September 4, 2022 compared to the comparable 14-week period of the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $24.9 million, or 2.7%, versus the same period in the prior year.

“We ended the year with a strong balance sheet, which included cash, cash equivalents and restricted cash of $251.4 million and debt of only $137.3 million,” continued Bahrambeygui.

PriceSmart recorded operating income during the fiscal fourth quarter of $39.0 million compared to operating income of $32.5 million in the prior year period. Net income attributable to PriceSmart grew 19.5% to $23.3 million, or $0.75 per diluted share, in the fourth quarter of fiscal year 2022 as compared to $19.5 million, or $0.63 per diluted share, in the fourth quarter of fiscal year 2021.

89% of paid members are renewing

Full Year Financial Results

Total revenues for the fiscal year ended August 31, 2022 increased 12.3% to $4.07 billion compared to $3.62 billion in the prior year.

Comparable net merchandise sales for warehouse clubs that have been open for greater than 13 ½ calendar months increased 10.4% for the 53-week period ended September 4, 2022 compared to the comparable 53-week period of the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $76.2 million, or 2.2%, versus the prior year.

The retailer recorded operating income during the fiscal year ended August 31, 2022 of $167.1 million compared to operating income of $158.0 million in the prior year. Net income attributable to PriceSmart grew 6.6% to $104.5 million, or $3.38 per diluted share, in the fiscal year ended August 31, 2022, as compared to $98.0 million, or $3.18 per diluted share, in the prior year.

“Our team continually strives for improvement, and with each new experience, our team becomes more agile and better prepared to take on the uncertainties and capitalize on potential opportunities going forward,” finished Bahrambeygui.

The new location will be off of the Transversal Inferior road that passes from near the Hotel Intercontinental on Las Palmas Avenue to just below the upscale El Tesoro shopping mall, and Calle 12 Sur, near the St. Michel complex. This is in Medellín’s highest income área, and also convenient to purchasers in the wealthy eastern suburbs such as El Retiro, Llanogrande, and Loma Del Escobero.

“We have long sought a suitable site in this very densely populated and growing area of El Poblado, Medellín. We believe the demographic profile around this location closely aligns with the value proposition we are known for. We look forward to serving both new and existing Members,” said Sherry S. Bahrambeygui, Pricesmart’s Chief Executive Officer.

Second Quarter 2022 Earnings Announcement Details:

PriceSmart plans to release second quarter fiscal year 2022 financial results on Thursday, April 7, 2022, after the market closes. PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, April 8, 2022, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (855) 209-8211 toll free or (412) 317-5214 for international callers and asking to join the PriceSmart, Inc. call. A digital replay will be available through April 15, 2022, following the conclusion of the call by dialing (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering replay passcode 5341114.

Shareholders of record on February 15 will receive $0.43 per share on February 28, 2022, and $0.43 per share on August 31 to shareholders of record on August 15. CEO Sherry S. Bahrambeygui said that the retailer is earning strong cash flow, and can drive new club growth, increase service and benefits to members, and generate incremental sales through the website and digital capabilities, all while delivering strong shareholder returns.

“Our cash flow continues to enable us to accelerate investments to drive growth, improve our ability to serve our members during the most challenging of times, and ensure that our employees receive competitive wages and excellent benefits.  Our Board has now approved an increase of 22.9% to the annual dividend to shareholders of our common stock,” said Bahrambeygui.

“We are pleased that the strength of our membership-driven business model and our confidence in our ability to continue to generate strong cash flow allows us to ensure that we are taking good care of all of our stakeholders while making the investments that we believe will drive growth.”

Directors elected at the annual meeting on February third include Sherry S. Bahrambeygui, Jeffrey R. Fisher, Gordon H. Hanson, Beatriz V. Infante, Leon C. Janks, Patricia Márquez, Robert E. Price, David R. Snyder and Edgar Zurcher, along with new director David Price.

David Price has served as PriceSmart’s Vice President of Omnichannel Initiatives & Social and Environmental Responsibility since September 2020 and co-manages the company’s Environmental and Social Responsibility strategy. Prior to his current role, Mr. Price was employed in various positions in the company related to the development of the PriceSmart’s digital strategy and initiatives since July 2017, most recently as Director of Ecommerce from August 2018 until August 2020. Price also has been a leader in the company’s e-commerce transformation and environmental and social responsibility initiatives. David Price is the son of Robert Price, and grandson of Sol Price. Sol and his son Robert founded the company after Sol sold the chain of domestic US warehouse clubs to Costco in 1993.

Stockholders also approved, on an advisory basis, the compensation of PriceSmart’s executive officers for fiscal year 2021 and ratified the selection of Ernst & Young as the company’s independent registered public accounting firm for the fiscal year ending August 31, 2022.

Total revenues for the first quarter of fiscal year 2022 increased 11.2% to $975.4 million USD compared to $877.4 million in the comparable period of the prior year. For the first quarter of fiscal year 2022, net merchandise sales increased 12.6% to $944.0 million from $838.4 million in the first quarter of fiscal year 2021. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $8.4 million, or 1.0%, versus the same period in the prior year.

PriceSmart operates 49 warehouse clubs, up from 46 in 2020.

Comparable net merchandise sales for the 46 warehouse clubs that have been open for greater than 13 ½ calendar months increased 9.4% for the 13-week period ended November 28, 2021, compared to the comparable period of the prior year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $8.5 million or 1.0% versus the same period in the prior year.

“Our team achieved a stellar first quarter, with Net merchandise sales growing by 12.6% and Comparable net merchandise sales growing 9.4% as compared to the same period last year. Our 12-month trailing Membership renewal rate is 89.0% and our membership base has grown to its all-time high,” said CEO Sherry S. Bahrambeygui.

PriceSmart reported operating income during the fiscal first quarter of $46.0 million compared to operating income of $44.5 million in the prior year period. Net income attributable to PriceSmart was $30.5 million, or $0.98 per diluted share, in the first quarter of fiscal year 2022 as compared to $27.7 million, or $0.90 per diluted share, in the first quarter of fiscal year 2021.

“We continue to augment the benefits of our Membership, including our Wellness initiatives in areas of Optical, Pharmacy and most recently, Audiology services. Our investments in technology and our omni-channel initiatives have enabled us to further expand services, membership benefits, and convenience for our members, allowing them to shop safely and enhancing the quality of their shopping experiences. Increasing our analytics capabilities is contributing to more timely and better decision-making in many areas of our business. In particular, the technology-enabled tools we are developing and applying are allowing us to unlock more value from our membership data, one of the key characteristics and differentiators of our business model,” commented Bahrambeygui.

PriceSmart operates 49 warehouse clubs in 12 countries and one U.S. territory (nine in Colombia; eight in Costa Rica; seven in Panama; five in the Dominican Republic and Guatemala; four in Trinidad; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). In addition, the Company plans to open its 50^th club in Portmore, Jamaica in April 2022.

Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $11.8 million or 1.5% versus the same period in the prior year. Comparable net merchandise sales for the 45 warehouse clubs that have been open for greater than 13 ½ calendar months increased 8.8% for the 13-week period ended May 30, 2021 compared to the comparable period of the prior year.

“Operational efficiencies, digital capabilities, optionality for our supply chain, and we believe, the trust of our employees and members to do our best to anticipate their needs and keep them safe, have contributed to our strong performance for the third quarter. Our total and comparable sales grew in the third quarter of fiscal year 2021, 11.6% and 8.8%, respectively, versus the same period last year. We continue to navigate through significant challenges in several of our markets, including rising COVID cases, club closures and restrictions, social unrest and economic pressures. However, our team is unwavering in its commitment to excel and deliver great value to our members, regardless of the circumstances,” said CEO Sherry S. Bahrambeygui.

“We are on target with plans to open new warehouse clubs in Guatemala City, Guatemala and Bucaramanga, Colombia in the fall of 2021, and in Portmore, Jamaica in the spring of 2022.”

PriceSmart had 47 warehouse clubs in operation as of May 31, 2021 compared to 45 warehouse clubs in operation as of May 31, 2020.

“Efforts to expand Membership benefits continue, such as our Wellness initiatives in Optical, Pharmacy and Audiology services. Our investments in technology and our omni-channel initiatives have enabled us to further enhance services, benefits, and convenience for our Members, among other things. Our trailing 12-month Membership renewal rate is 87.6% – higher than its pre-COVID level – and our Membership base is rapidly approaching its peak pre-COVID level,” said Bahrambeygui.

Comparable net merchandise sales for the 45 warehouse clubs that have been open for greater than 13 ½ calendar months increased 8.8% for the 13-week period ended May 30, 2021, compared to the comparable period of the prior year.

Pricesmart recorded operating income during the fiscal third quarter of $36.0 million compared to operating income of $24.0 million in the prior year period. Net income attributable to PriceSmart was $22.5 million, or $0.73 per diluted share, in the third quarter of fiscal year 2021 as compared to $12.7 million, or $0.41 per diluted share, in the third quarter of fiscal year 2020.

“Our team has innovated, elevated performance and delivered results in unprecedented ways. This has inspired us all for the future of our company,” added Bahrambeygui in a written statement shared by PriceSmart.

“Our Membership base has increased by 5.2% and our trailing 12-month renewal rate has increased by 8.9% from the lows in August 2020. Our trailing 12-month renewal rate is higher than its pre-COVID peak and our Membership base is nearly there too. This validates that our business model and rigorous commitment to our Members is valued even in the most challenging of circumstances,” said Sherry S. Bahrambeygui, Chief Executive Officer.

For the five weeks ended May 30, 2021, comparable net merchandise sales for the 45 warehouse clubs open at least 13½ full months increased 12.0% when compared to the same period last year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 1.6%, or $4.4 million, versus the same period in the prior year.

“Now, facing the second year of the pandemic and despite continuing restrictions and civil unrest in certain markets, our total and comparable sales grew in May 2021, 16.3% and 12.0%, respectively, versus May of last year.  Our Click & Go service, including curbside pickup and delivery, contributed 4.0% of net merchandise sales and has enabled an alternate and safe channel for attending to our Members’ needs,” added Bahrambeygui.

The 12-month membership renewal rate was 87.6% for the period ended May 31, 2021, an increase from the 81.5% and 80.5% 12-month renewal rate for the periods ended February 28, 2021 and August 31, 2020, respectively.

Fiscal year to date, which includes the nine months ended May 31, 2021, net merchandise sales increased 7.3% to $2,594.3 million from $2,418.8 million for the nine months ended May 31, 2020. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by 2.7% or $66.3 million versus the same nine-month period in the prior year.

According to Bahrambeygui: “Our team of more than 10,000 associates remains vigilant by keeping our employees and Members safe while providing a compelling shopping experience that includes carefully-curated merchandise from around the world.  Our additional services and focus on health and wellness that include optical, our recently-introduced pharmacies and our plan to pilot audiology centers in certain markets should further enhance Member loyalty.”

For the 39-week period ended May 30, 2021, comparable net merchandise sales increased 4.3% compared to the same 39-week period a year ago. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 2.7% or $65.0 million versus the same prior year period.

Third Quarter 2021 Earnings Announcement Details:

PriceSmart plans to release third quarter fiscal year 2021 financial results on Thursday, July 8, 2021, after the market closes. PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Friday, July 9, 2021, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing (855) 209-8211 toll free or (412) 317-5214 for international callers and asking to join the PriceSmart, Inc. call. A digital replay will be available through July 16, 2021, following the conclusion of the call by dialing (877) 344-7529 for domestic callers, or (412) 317-0088 for international callers, and entering replay passcode 10156316.

The company also announced that for the month of January 2021, net merchandise sales grew 5.2% to $267.1 million USD from $254.0 million in January 2020. Foreign currency exchange fluctuations impacted net merchandise sales negatively by 3.5%, or $8.9 million, versus the same one-month period in the prior year. There were 47 warehouse clubs in operation at the end of January 2021 and 45 warehouse clubs in operation at the end of January 2020.

For the four weeks ended January 24, 2021, comparable net merchandise sales for the 45 warehouse clubs open at least 13 ½ full months increased 2.8% when compared to the same period last year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 3.3%, or $7.7 million, versus the same period in the prior year.

The international warehouse club operator announced that for the month of January 2021, net merchandise sales grew 5.2% to $267.1 million USD from $254.0 million in January 2020.

“In January, net merchandise sales and comparable net merchandise sales grew despite a surge in COVID cases and increased COVID-related restrictions in some of our markets. Consolidated comparable sales increased in January but were partially offset by declines in Colombia and Trinidad. The Colombia comparable net merchandise sales decline was primarily due to two significant factors:  the increase in reported COVID cases that drove an increase in restrictions on circulation and the impact from sales that transferred from existing clubs to our recently opened Usaquén club in Bogotá. Sales declined in our Trinidad market largely due to our decision to limit U.S. merchandise imports because of ongoing insufficient U.S. dollar liquidity. We are pursuing alternative solutions to mitigate the current illiquidity challenges in Trinidad, while continuing to reassess the current limitations on an ongoing basis. As this pandemic persists, we lost approximately 70 club days in January, where in-club shopping was prohibited. In addition, several locations contended with reduced operating hours, restrictions on segments of the population permitted to shop or circulate, limitations on the number of people allowed inside our clubs and restrictions on certain areas of our business such as food services and Optical,” said CEO Sherry S. Bahrambeygui.

Fiscal year to date, which includes the five months ended January 31, 2021, net merchandise sales increased 6.0% to $1,478.1 million from $1,395.0 million for the five months ended January 31, 2020. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by 3.4% or $46.9 million versus the same five-month period in the prior year.

“Our Click & Go service, including curbside pickup and delivery, contributed approximately 3.6% of total net merchandise sales for the month. Delivery through Click &Go is now available in all of our markets, and the demand for delivery continues to grow as a portion of total Click & Go sales. Developing greater efficiencies remains a priority, especially within these new sales channels. We recently introduced the option for our Members to select specific dates and windows of time for curbside pickup and delivery, which allows us to improve service and offer greater convenience to our Members,” added Bahrambeygui.

For the 21-week period ending January 24, 2021, comparable net merchandise sales increased 2.2% compared to the same twenty-one-week period a year ago. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 3.3% or $43.9 million versus the same prior year period.

PriceSmart shareholders elected the following individuals to its Board of Directors:

Patricia Márquez has served as Dean of the Joan B. Kroc School of Peace Studies at the University of San Diego since 2014, and in July 2020 she started her dual role as Associate Provost for Academic Planning and Innovation and Dean of the Joan B. Kroc School of Peace Studies. Her research has focused on the intersection of business and social value creation, with an emphasis on poverty alleviation through market mechanisms. Prior to joining USD, Dr. Márquez was a professor and dean at IESA, a School of Business in Caracas, Venezuela from 2003 to 2005.

David Snyder has served as a senior counsel at Pillsbury Winthrop Shaw Pittman, LLP since 2018 and previously served as a partner from 1993 until 2017 in the firm’s Corporate and Securities practice. During 25 years as a partner, Mr. Snyder also served as Pillsbury’s executive vice-chair for two years and on the firm’s managing board for 15 years. Mr. Snyder has been a practicing attorney for over 40 years, focusing on corporate finance and has significant experience representing and advising public companies and their boards.

“We are pleased to welcome two new directors who have experience that will especially strengthen our board in the area of environmental and social responsibility and on governance matters,” added Bahrambeygui. “We look forward to Dr. Márquez’s participation as a recognized expert in environmental and social responsibility matters. She will serve as the Chair of the new Environmental and Social Responsibility Committee of our Board of Directors. Dr. Márquez has dedicated her career to driving innovation for achieving prosperity, peace, justice, and social change. We also welcome Mr. Snyder, who has over 40 years of legal experience representing and advising public companies and their boards on governance and compliance matters in addition to broad experience in executive management.”

In addition to Dr. Marquez and Mr. Snyder, the following directors were re-elected: Sherry S. Bahrambeygui, Jeffrey Fisher, Gordon H. Hanson, Beatriz V. Infante, Leon C. Janks, Mitchell G. Lynn, Robert E. Price and Edgar Zurcher.

PriceSmart operates 47 warehouse clubs in 12 countries and one U.S. territory (eight in Costa Rica and Colombia; seven in Panama; five in the Dominican Republic, four in Trinidad and Guatemala; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). The company also plans to open new warehouse clubs in Guatemala City, Guatemala and Bucaramanga, Colombia in the fall of 2021, and in Portmore, Jamaica in the spring of 2022. Once these three new clubs are open, the company will operate 50 warehouse clubs.

In October 2019, PriceSmart purchased approximately 210,000 square feet of land in Floridablanca to build a smaller format club compared to its traditional warehouse club designs. Floridablanca is suburb of Bucaramanga, the capital of Colombia’s Santander department, and the largest city in Colombia east of Bogotá. Known as one of Colombia’s most highly developed cities with a human development index score of .879, the city of 800,000 has a diverse economy and direct international flights to and from Panamá & the United States.

“The commitment to another warehouse club in Colombia reflects our continuing belief that Colombia represents a significant growth market for the company. The club will be built as a smaller format in this secondary city market, which is located approximately 250 miles from our ‘Las Américas’ club in Medellín, Colombia. The decision to proceed with the Bucaramanga club is also driven by our experience with our other small formats, the potential we see in secondary markets, and the opportunity to expand our reach with the support of our newly developed online and last-mile capabilities,” said PriceSmart CEO Sherry S. Bahrambeygui.

“We now have three new clubs under construction. We expect this club and our previously announced Guatemala City, Guatemala club to open in the fall of 2021 and our Portmore, Jamaica club to open in the spring of 2022. With the completion of these three clubs, we will have reached the 50-club milestone, but continue to believe that we still have significant growth opportunities ahead. In addition to future club growth, we also continue to focus on driving comparable net merchandise sales in our existing locations and through our omni-channel shopping alternatives. This would not have been possible without the dedication of our team across all aspects of the business,” she added.

Above Bucaramanga cityscape photo: © Loren Moss

For the four weeks ended December 27, 2020, comparable net merchandise sales for the 43 warehouse clubs open at least 13 ½ full months decreased 1.7% when compared to the same period last year. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 2.9%, or $9.2 million, versus the same period in the prior year.

“In December, net merchandise sales grew despite increases in COVID-related cases and restrictions versus the prior month.  Comparable sales decreased primarily in Costa Rica, Panama, and Colombia where COVID cases and related restrictions were on the rise and because of sales transferred from existing clubs to newly opened clubs in Panama and Colombia. In December, we lost approximately 14 club days to closures where in-club shopping was prohibited.  Several clubs also contended with reduced operating hours, restrictions on segments of the population permitted to shop or circulate, limitations on the number of people allowed inside and restrictions on areas of our business such as food services and optical. In addition, sales declined in our Trinidad market, we believe, largely due to our decision to limit U.S. merchandise imports because of ongoing insufficient U.S. dollar liquidity. We are working on alternative solutions to mitigate the current illiquidity challenges,” said CEO Sherry S. Bahrambeygui.

• • Net Merchandise Sales grew 2.8%, after negative 3.1% FX impact
  • Comparable Net Merchandise Sales decreased 1.7%, after 2.9% negative FX impact
  • E-Commerce Penetration was 2.8% of Total Net Merchandise Sales

“Our Click & Go service, including curbside pickup and delivery, contributed approximately 2.8% of total net merchandise sales for the month. Delivery through Click &Go is now available in all of our markets, and the demand for delivery continues to grow as a portion of total Click & Go sales. Developing greater efficiencies remains a priority, especially within these new sales channels. We believe that Click & Go curbside and delivery services enabled by our new online platform, will remain important alternative shopping methods and will provide increased value for our members. Expanded online interaction with our members also yields opportunities for us to better access and analyze data to support merchandising decisions and enhance the connection with our members.”

Fiscal year to date, which includes the four months ended December 31, 2020, net merchandise sales increased 6.1% to $1,211.0 million from $1,141.0 million for the four months ended December 31, 2019. Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by 3.4% or $38.0 million versus the same four-month period in the prior year.

“On real estate, in early December we celebrated the grand opening of the new Usaquén Club, our third club in the greater metropolitan area of Bogota and located in the heart of a densely populated area. This is the second club we have successfully opened despite travel restrictions. Club Usaquen should drive sales growth, provide greater convenience and strengthen our presence in this market. In mid-December, we also announced that we plan to proceed with the construction of two new clubs, one each in Guatemala and Jamaica which are expected to open in fiscal year 2022.  As I’ve frequently noted, new club openings likely impact adversely our comparable net merchandise sales in the early stages. However, these locations provide strategic opportunities to grow incremental membership and sales and support our efforts to ensure that our members continue to enjoy our in-club uniquely curated selection of goods and services at great values,” added Bahrambeygui.

For the 17-week period ended December 27, 2020, comparable net merchandise sales increased 2.0% compared to the same 17-week period a year ago. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by 3.3% or $36.2 million versus the same prior year period.

“We are drawing upon the valuable experience gained through this last year and the systems that have been improved to enhance member experience, strengthen online capabilities and keep our employees and members safe. I’m proud of our team’s performance for navigating these developments and for continuing to strengthen our core capabilities during our busiest month of the year,” concluded Bahrambeygui.