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PriceSmart Q3 profit falls, share

Fri Jul 10, 2009 12:30pm EDT

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(Reuters) - Warehouse club operator PriceSmart Inc (PSMT.O) posted an 18 percent drop in quarterly profit dragged down in part by higher costs, sending its shares down 12 percent.

For the third quarter ended May 31, the company, which owns and operates about 26 warehouse clubs in Central America and the Caribbean, posted net income of $8.7 million, or 30 cents per share, versus $10.6 million, or 36 cents per share, a year-ago.

Revenue at the company, which sells low-cost food, pharmacy, and basic consumer items to PriceSmart members, rose about 8 percent to $306.5 million.

One analyst was expecting PriceSmart to earn 33 cents per share on revenue of $304.2 million, according to Reuters Estimates.

Total operating expenses for the company, whose rivals include Carrefour (CARR.PA) and Wal-mart Stores Inc (WMT.N), increased 9 percent to $293.3 million.

Shares of the San Diego-based company were trading at $16.45 before the bell. They closed at $18.66 Thursday on Nasdaq.

(Reporting by Viraj Nair; Editing by Amitha Rajan)


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