PRICESMART INC MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (kind 10-Q)

, PRICESMART INC MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (kind 10-Q)

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Declaraciones prospectivas


This Quarterly Report on Type 10-Q comprises forward-looking statements
regarding PriceSmart, Inc.'s ("PriceSmart", the "Firm" or "we")
anticipated future revenues and earnings, adequacy of future money flows,
omni-channel initiatives, proposed warehouse membership openings, the Firm's
efficiency relative to rivals and associated issues. These forward-looking
statements embrace, however should not restricted to, statements containing the phrases
"count on," "consider," "will," "could," "ought to," "undertaking," "estimate,"
"anticipated," "scheduled," "intend," and like expressions, and the destructive
thereof. These statements are topic to dangers and uncertainties that would
trigger precise outcomes to vary materially together with, however not restricted to: antagonistic
modifications in financial situations in our markets, pure disasters, compliance
dangers, volatility in foreign money trade charges and illiquidity of sure native
currencies in our markets, competitors, shopper and small enterprise spending
patterns, political instability, elevated prices related to the combination
of on-line commerce with our conventional enterprise, whether or not the Firm can
efficiently execute strategic initiatives, cybersecurity breaches that would
trigger disruptions in our programs or jeopardize the safety of Member or
enterprise info, value will increase from product and repair suppliers,
interruption of provide chains, novel coronavirus (COVID-19) associated components and
challenges, together with amongst others, the period of the pandemic, the unknown
long-term financial impression, the impression of presidency insurance policies and restrictions
which have restricted entry for our Members, and shifts in demand away from
discretionary or greater priced merchandise to decrease priced merchandise, publicity to
product legal responsibility claims and product remembers, recoverability of moneys owed to
PriceSmart from governments, and different essential components mentioned beneath the
captions "Merchandise 1A. Danger Elements" and "Merchandise 7. Administration's Dialogue and
Evaluation of Monetary Situation and Outcomes of Operations" in our Annual Report
on Type 10-Ok for the fiscal 12 months ended August 31, 2021 filed with the United
States Securities and Trade Fee ("SEC") on October 21, 2021. These
threat components could also be up to date every now and then in our different filings with the SEC,
that are accessible on the SEC's web site at www.sec.gov. Ahead-looking
statements communicate solely as of the date that they're made, and the Firm does
not undertake to replace them, besides as required by legislation. As well as, these
dangers should not the one dangers that the Firm faces. The Firm is also
affected by further components that apply to all corporations working globally
and within the U.S., in addition to different dangers that aren't presently identified to the
Firm or that the Firm at present considers to be immaterial.



Descripción normal


PriceSmart exists to enhance the lives and companies of our Members, our
staff and our communities by reliably and persistently offering high quality
items and precious providers on the lowest attainable costs. We consider that decrease
costs on services drive gross sales quantity, which will increase the
Firm's shopping for leverage, which in flip results in higher pricing that we will
then provide to our Members, validating the worth of the annual membership price.

PriceSmart started operations in 1996 in San Diego, California, with the intent to
convey our U.S. type membership procuring warehouse membership idea to underserved
nations. We at present function 49 warehouse golf equipment in Central America, the
Caribbean and Colombia. Our Members are also capable of store on our e-commerce
platform, PriceSmart.com, which is accessible in all 13 markets.

We provide our particular person and enterprise Members a carefully-curated choice of
prime quality, model title and personal label shopper merchandise, important items
and direct-from-farm recent produce. We additionally present ready meals and
fresh-baked items. Most all merchandise is accessible for supply or contactless
curbside pickup by our Click on & Go™ service. A few of our golf equipment additionally present
providers that embrace Optical, Pharmacy, Audiology and Tire departments and
serve meals at our meals courts. Traditionally, our typical warehouse buildings
have ranged in gross sales ground dimension from roughly 40,000 to 60,000 sq. toes
and are positioned in and across the main cities in our markets to take benefit
of dense populations and comparatively greater ranges of disposable
earnings. Moreover, we function smaller format golf equipment, with gross sales flooring ranging
from roughly 30,000 to 40,000 sq. toes. These smaller format golf equipment
serve markets the place the inhabitants could also be much less dense and/or the place there could also be
vital enterprise to enterprise alternatives. We even have utilized the
smaller format choice to entry and serve city areas the place it's troublesome to
safe adequate actual property at an affordable value. The choice of utilizing a
smaller format membership, coupled with our omni-channel initiatives, helps us develop
our membership base and geographic attain in present markets. We strategically
put money into expertise to reinforce Member expertise and comfort. Expertise
permits us to make use of precious membership and different knowledge to extend efficiencies and
use our insights about our Members to positively impression their lives. We additionally
present wholesale provide providers to a retailer in the Philippines.



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Logistics and distribution efficiencies are elementary to delivering excessive
high quality merchandise at low costs to our Members. We make the most of regional
distribution facilities within the U.S. and Costa Rica in addition to a number of native
distribution facilities to distribute merchandise effectively, retain flexibility
and supply alternate options to supply and transport items, and mitigate the danger of
supply-chain disruption. As our enterprise grows and consists of extra e-commerce
exercise, we frequently consider  make the most of our logistics and distribution
system to most effectively present merchandise to our Members. We additionally search to
drive membership worth and efficiencies by increasing our community of Produce
Distribution Facilities and are exploring centralizing manufacturing actions, such
as bakery and meat processing.

Buying land and setting up warehouse golf equipment is usually our largest
ongoing capital funding. Securing land for warehouse membership areas is
difficult in a number of of our markets as a result of appropriate websites at economically
possible costs are troublesome to search out. Possession of our actual property in a lot of
our markets gives a number of benefits, together with decrease working bills,
flexibility to develop or in any other case improve our buildings, long-term management over
the usage of the property and potential improve of worth in future years. We personal
and lease our actual property, relying upon one of the best obtainable alternatives.

Our warehouse golf equipment at present function in rising markets that traditionally have
had greater progress charges and decrease warehouse membership market penetration than the
U.S. market. Within the nations during which we function, we don't at present face
direct competitors from U.S. membership warehouse membership operators. Nevertheless, we do
face competitors from numerous retail codecs resembling hypermarkets, supermarkets,
money and carry, dwelling enchancment facilities, digital retailers, specialty
shops, comfort shops, conventional wholesale distribution and on-line gross sales.

The variety of warehouse golf equipment for every nation or territory had been as follows:

                         Variety of           Variety of
                      Warehouse Golf equipment     Warehouse Golf equipment
                     in Operation as of  in Operation as of
Nation/Territory    November 30, 2021   November 30, 2020
Colombia                              9                   7
Costa Rica                            8                   8
Panama                                7                   7
Dominican Republic                    5                   5
Guatemala                             5                   4
Trinidad                              4                   4
Honduras                              3                   3
El Salvador                           2                   2
Nicaragua                             2                   2
Aruba                                 1                   1
Barbados                              1                   1
U.S. Virgin Islands                   1                   1
Jamaica                               1                   1
Totals                               49                  46


Our warehouse golf equipment, one regional distribution heart and a number of other smaller native
distribution facilities are positioned in Latin America and the Caribbean, and our
company headquarters, U.S. shopping for operations and our bigger regional
distribution heart are positioned primarily in the US. Our working
segments are the US, Central America, the Caribbean and Colombia.

We're at present continuing with the development of an ordinary format warehouse
membership positioned throughout the metropolis of Portmore, Jamaica. Portmore is a suburb west of
the capital metropolis of Kingston. We count on to open this warehouse membership, which is able to
be our second warehouse membership in Jamaica, in April 2022; it is going to even be our fiftieth
warehouse membership.



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Factores que afectan nuestro negocio


The COVID-19 pandemic has resulted in vital challenges throughout our 13
markets since March 2020. Many markets imposed limitations, various by market
and in frequency, on entry to the Firm's golf equipment and on the Firm's membership
operations, together with in some circumstances frequent short-term membership closures, a
discount within the variety of days through the week and hours per day the Firm's
golf equipment had been permitted to be open, restrictions on segments of the inhabitants
permitted to buy or flow into on explicit days, and vital limits on the
variety of individuals permitted to be within the membership on the similar time. We additionally
skilled product combine shifts as a consequence of altering shopper habits and/or authorities
imposed limitations on many non-food classes, decreases in purchases by many
enterprise Members, significantly eating places and resorts, and sporadic provide chain
challenges, which might impression stock ranges.

Actualmente estamos enfocados en estas cuatro prioridades principales:

?Proteger la seguridad y el bienestar de nuestros empleados y de nuestros Miembros.

?Tomar medidas proactivas para proteger y expandir nuestras opciones de cadena de suministro.

?Ampliar las compras basadas en tecnología y un uso más efectivo de los datos.

?Administrar efectivo y recursos de capital.


We acknowledge that that is an evolving and fluid scenario; subsequently, we're
vigilantly adapting to shifting shopper calls for rising from the pandemic. The
scenario stays unpredictable in period and depth, and we proceed to
see periodic reinstatements of stay-at-home orders and different restrictions. In
addition, we count on continued uncertainty within the economies of our markets as a
results of the pandemic and anticipate volatility in employment developments, trade
and shopper confidence and demand; volatility and liquidity of overseas foreign money
trade charges; volatility of commodity costs; and attainable fiscal austerity
measures taken by governments in our markets, which is able to seemingly impression our
outcomes for the foreseeable future. For extra info, seek advice from the
threat components mentioned in Half I. "Merchandise 1A. Danger Elements" within the Firm's
Annual Report on Type 10-Ok for the 12 months ended August 31, 2021.

Tendencias económicas generales, volatilidad del cambio de moneda extranjera y otros factores que afectan el negocio


Our gross sales and earnings range from market to market relying on normal financial
components, together with GDP progress; shopper preferences; overseas foreign money trade
charges; political insurance policies and social situations; native demographic
traits (resembling inhabitants progress); the variety of years we've got
operated in a specific market; and the extent of retail and wholesale
competitors in that market. The economies of a lot of our markets are dependent
on overseas commerce, tourism, and overseas direct investments. International and native
journey restrictions and a normal slow-down in international financial exercise as a
results of COVID-19 have considerably impacted and should proceed to impression the
economies in a number of of our markets, inflicting vital declines in GDP and
employment and devaluations of native currencies towards the U.S. greenback.

Over the past half of fiscal 12 months 2021 and persevering with into fiscal 2022, we noticed
a number of components pressuring provide chains, together with container shortages, port
delays, and truck and driver shortages. These disruptions and shortages are
impacting the timing of deliveries and resulting in greater freight prices. Regardless of
all these points, we proceed to see sturdy gross sales. We're working to carry down
and/or mitigate the worth will increase handed on to the Members and preserve
adequate stock to develop gross sales. One key mitigating issue has been our
expanded community of distribution facilities, which has facilitated different
routings of shipments, elevated throughput, and supplied flexibility to extra
successfully mitigate these challenges. As well as, we've got made strategic
investments in stock and labored with our native distributors to supply different
merchandise, with a view to cut back future out-of-stocks on excessive demand objects which have
been impacted by these disruptions or which were affected by digital half
shortages. We count on pandemic-related situations to proceed all through fiscal
2022.

Foreign money fluctuations may be one of many largest variables affecting our total
gross sales and revenue efficiency, as we've got skilled in prior fiscal years,
as a result of a lot of our markets are vulnerable to overseas foreign money trade fee
volatility. In the course of the first three months of each fiscal 12 months 2022 and 2021,
roughly 77.8% of our internet merchandise gross sales had been in currencies apart from
the U.S. greenback. Of these gross sales, 48.5% and 49.5% consisted of gross sales of merchandise
we bought in U.S. {dollars} for every interval, respectively.



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A devaluation of native foreign money reduces the worth of gross sales and membership earnings
that's generated in that nation when translated to U.S. {dollars} for our
consolidated outcomes. As well as, when native foreign money experiences devaluation,
we could elect to extend the native foreign money worth of imported merchandise to
preserve our goal margins, which may impression demand for the merchandise
affected by the worth improve. We can also modify the combo of imported versus
native merchandise and/or the supply of imported merchandise in an effort to
mitigate the impression of foreign money fluctuations. Details about the impact of
native foreign money devaluations is mentioned in "Administration's Dialogue and
Evaluation of Monetary Situation and Outcomes of Operations - Web Merchandise
Gross sales and Comparable Gross sales."

Our seize of whole retail and wholesale gross sales can range from market to market
as a consequence of competitors and the provision of different procuring choices for our
Members. Demographic traits inside every of our markets can have an effect on each
the general stage of gross sales and future gross sales progress alternatives. Sure island
markets, resembling Aruba, Barbados and the U.S. Virgin Islands provide us restricted
upside for gross sales progress given their total market dimension.

Political and different components in every of our markets could have vital results
on our enterprise. For instance, the civil unrest in Colombia paralyzed vital
parts of the nation's infrastructure as roadblocks and riots disrupted
regular financial exercise through the third quarter of fiscal 2021. Austerity and
tax reform measures for Colombia and different Latin American nations with excessive
nationwide debt ranges and earnings disparity pose a threat for political instability.
Related unrest occurred in Nicaragua and Honduras in 2018 and 2019,
respectively; Costa Rica additionally had a normal strike towards tax reform measures
that considerably impeded common financial exercise in 2018. Occasions of this
kind have, and should proceed to have, an antagonistic impact on our enterprise.

Our operations are topic to unstable climate situations and pure disasters.
In November 2020, Hurricanes Eta and Iota introduced extreme rainfall, winds, and
flooding to a good portion of Central America, particularly Honduras, that
induced vital harm to elements of that nation's infrastructure. Though
our warehouse golf equipment weren't considerably affected and we had been capable of handle
our provide chain to maintain our warehouse golf equipment stocked with merchandise, these
pure disasters may adversely impression our total gross sales, prices and revenue
efficiency sooner or later.

Prior to now, we've got skilled an absence of availability of U.S. {dollars} in
sure markets (U.S. greenback illiquidity), significantly in Trinidad. This may
and has impeded our capability to transform native currencies obtained by
merchandise gross sales into U.S. {dollars} to settle the U.S. greenback liabilities
related to our imported merchandise and to in any other case redeploy these funds in
our Firm. This illiquidity additionally will increase our overseas trade publicity to
any devaluation of the native foreign money relative to the U.S. greenback. Throughout fiscal
12 months 2021 and persevering with into fiscal 12 months 2022, we proceed to expertise
vital limitations on our capability to transform Trinidad {dollars} to U.S.
{dollars} or different tradeable currencies. As liquidity situations have tightened,
we've got raised costs on imported items in Trinidad as a consequence of elevated prices of
conversion of Trinidad {dollars} to U.S. {dollars} and dangers related to
continued illiquidity. We've got additionally sought to shift the acquisition of sure
items to native sources the place applicable, and we're actively in search of to
trade Trinidad {dollars} for tradeable currencies to handle our publicity to any
potential devaluation. As well as, we considerably restricted shipments of products
from the U.S. to Trinidad throughout most of fiscal 2021 and persevering with into fiscal
2022 because of the illiquidity of the Trinidad greenback. We additional lowered our
already restricted shipments within the final quarter of fiscal 2021 due to the
authorities imposed restrictions on non-essential objects throughout that interval.
Nevertheless, whereas shipments remained low relative to historic ranges, shipments did
improve sequentially from the fourth quarter of fiscal 2021 to the primary
quarter of fiscal 2022 in reference to the federal government's lifting of
restrictions on gross sales of non-essential objects through the first quarter.

We proceed to discover and execute a number of choices to extend our capability to
generate extra dependable sources of U.S. {dollars} in Trinidad, a few of which can
lead us to incur further bills. As an illustration, in December 2021, we
executed a mortgage whereby we obtained $25 million of U.S. {dollars}, however the
related principal and curiosity might be repaid in Trinidad {dollars} (transformed
at charges in impact in December 2021) over a four-year interval, thereby locking in
the conversion of a big quantity of Trinidad {dollars} at present conversion
charges and releasing up this money in U.S. {dollars} for deployment for normal
company functions.

As of November 30, 2021, our Trinidad subsidiary had Trinidad greenback denominated
money and money equivalents and quick and long-term investments measured in U.S.
{dollars} of roughly $49.9 million, a lower of $3.0 million from August
31, 2021 when these similar balances had been roughly $52.9 million. The Trinidad
central financial institution manages the trade fee of the Trinidad greenback with the U.S.
greenback. Whereas the Trinidad authorities has publicly said it has no intention to
devalue the Trinidad greenback, it may sooner or later determine to devalue the
foreign money to enhance market liquidity, leading to a devaluation within the U.S.
greenback worth of those money and investments balances.



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If, for instance, a hypothetical 20% devaluation of the Trinidad greenback had been to
happen, the worth of our Trinidad greenback money and investments place, measured
in U.S. {dollars}, would lower by roughly $10.0 million, with a
corresponding improve in Amassed different complete loss mirrored on our
consolidated stability sheet. Separate from the Trinidad greenback denominated money
and investments balances described above, as of November 30, 2021, we had a U.S.
greenback denominated financial asset place of roughly $21.1 million in
Trinidad (internet of U.S. greenback denominated liabilities), which might produce a
achieve from a possible devaluation of Trinidad {dollars}. If, for instance, a
hypothetical 20% devaluation of the Trinidad greenback occurred, the online impact on
Different earnings (expense), internet on our consolidated assertion of operations of
revaluing these U.S. greenback denominated internet financial belongings could be an
approximate $4.2 million achieve. Whereas we could pay premiums or enter into monetary
transactions at a reduction from the official authorities fee to transform our
Trinidad {dollars} into U.S. {dollars}, we use the official trade fee revealed
by the Central Financial institution of Trinidad and Tobago to measure the U.S. greenback equal
of Trinidad dollar-based revenues, bills, belongings and liabilities and the
Trinidad greenback equal of U.S. dollar-based financial belongings and liabilities
for monetary reporting functions, as there aren't any different dependable references
obtainable to translate or remeasure our revenues, bills, belongings and
liabilities.

Our Barbados subsidiary additionally started going through a U.S. greenback illiquidity scenario in
fiscal 2020. The Barbados greenback has a standard fixed-peg foreign money
association, during which the Barbados greenback trade fee is mounted to the U.S.
greenback. Thus, we don't count on a devaluation of this foreign money right now. As
of November 30, 2021, our Barbados subsidiary had Barbados greenback denominated
money and money equivalents measured in U.S. {dollars} of roughly $3.3
million, which couldn't be readily transformed to U.S. {dollars} for normal use
throughout the Firm. Nevertheless, this stability has decreased considerably from the
$12.4 million stability as of August 31, 2021.



Misión y Estrategia Empresarial


PriceSmart exists to enhance the lives and companies of our Members, our
staff, and our communities by the accountable supply of one of the best
high quality items and providers on the lowest attainable costs. Our mission is to
function a mannequin firm, which operates profitably and gives a great return
to our buyers, by offering Members in rising and growing markets with
thrilling, high-quality merchandise sourced from world wide and precious
providers at compelling costs in secure U.S.-style golf equipment and thru
PriceSmart.com. We prioritize the well-being and security of our Members and
staff. We offer good jobs, truthful wages and advantages and the chance for
progress. We attempt to deal with our suppliers proper and empower them after we can. We
conduct ourselves in a socially accountable method as we endeavor to enhance the
high quality of the lives of our Members and their companies, whereas respecting the
atmosphere and the legal guidelines of all of the nations during which we function. The annual
membership price allows us to function our enterprise with decrease margins than
conventional retail shops. As we improve our technological capabilities, we're
rising our instruments to drive gross sales and operational efficiencies. We consider we
are well-positioned to mix the joy and attraction of our brick-and-mortar
enterprise with the comfort and extra advantages of on-line procuring and
providers.

Development

Al mirar hacia el futuro, nuestra Compañía se enfoca en tres motores principales de crecimiento:

?Bienes raíces – Clubes nuevos y las instalaciones de distribución

?Valor de membresía

?Ventas incrementales generadas a partir de PriceSmart.com y capacidades digitales y en línea


Actual Property - New Golf equipment and Distribution Services. We proceed to actively
search alternatives to develop our geographic footprint for brick-and-mortar
warehouse golf equipment. Our fiftieth membership is scheduled to open in Jamaica in April 2022. We
intend to proceed, and even speed up, our present tempo of membership progress over
the subsequent 3-5 years and to proceed to discover and consider alternatives in new
markets. Our progress technique, because it pertains to actual property, consists of bodily
distribution facilities of assorted varieties to most effectively help the circulation of
merchandise from the provider to the Member, be it gross sales generated from the
golf equipment or by PriceSmart.com. Additionally, the necessity for optionality in at this time's world
has confirmed important. Subsequently, we plan to make applicable investments in our
distribution community to maximise efficiencies, reduce provide chain disruption,
and to supply optimum help for a rising e-commerce enterprise. Along with
our distribution heart in Miami, Florida, we additionally function a regional
distribution heart in Costa Rica and are actively contemplating others. We additionally
intend to develop our community of Produce Distribution Facilities. In some circumstances,
these amenities additionally present the chance to seize efficiencies by
centralizing sure manufacturing actions, resembling bakery, meat processing,
packaging and labeling.

Membership Worth. Driving membership worth results in the next membership base,
the chance to extend the membership price when applicable, and contributes
to the underside line of the enterprise. We deal with progress of our membership base,
member renewal charges and spend per Member as a part of how we decide how
Members see our worth. By including extra



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advantages that Members can solely get hold of with us, we count on to see progress in
Membership earnings. Current examples embrace: further providers such because the
capability for all of our Members to transact on PriceSmart.com; Click on & Go™
curbside pickup and supply service in all of our golf equipment; and the implementation
and growth of our Properly-being initiative, which presents Optical providers with
free eye exams for the member and extra members of their households and
deeply discounted eyeglass frames, Audiology providers with free listening to exams
and deeply discounted listening to aids, and Pharmacy, which gives a big
comfort to our Members.

One other driver of Membership worth is our personal label providing, which we're
working to develop. Personal label additionally gives us the chance to supply
high quality objects domestically when applicable. Choose native sourcing has a number of
advantages together with help of native communities during which we function by
growing trade and creating direct and oblique jobs, mitigation of overseas
foreign money trade threat, native foreign money procurement, and lowered provide chain
publicity. These initiatives provide further advantages and providers for our
Members whether or not they select to buy on-line, in-club, or each.

Incremental gross sales generated from PriceSmart.com and digital and on-line
capabilities. Members proceed to hunt all the nice worth our distinct enterprise
mannequin gives by way of high quality, pricing and an thrilling expertise. Nevertheless,
there's a rising expectation of customers in our markets for comfort. We
proceed to construct capabilities and our choices on PriceSmart.com. We additionally
construct and apply technological instruments to proceed to be taught extra about and
strengthen {our relationships} with every of our Members. Along with knowledge
analytics, we've got been capable of present our Members with enhancements to the
membership expertise. PriceSmart.com and these instruments present the chance
for us to repeatedly strengthen and develop the scope of our relationship with
every Member and provide incremental services sooner or later.

Los aspectos financieros destacados del primer trimestre del año fiscal 2022 incluyeron:

?Los ingresos totales aumentaron un 11,2% con respecto al período comparable del año anterior.


?Web merchandise gross sales elevated 12.6% over the comparable prior 12 months interval. We
ended the quarter with 49 warehouse golf equipment in comparison with 46 warehouse golf equipment on the
finish of the primary quarter of fiscal 2021. Overseas foreign money trade fee
fluctuations impacted internet merchandise gross sales negatively by 1.0% versus the
comparable three-month interval.

?Ventas netas de mercancías comparables (es decir, ventas en los 46 clubes de almacén que han estado abiertos por más de 13 ½

meses calendario) para las 13 semanas terminadas 28 de noviembre de 2021 aumentó 9.4%. Las fluctuaciones del tipo de cambio de moneda extranjera afectaron negativamente las ventas netas de mercancías comparables en un 1,0%.

?Los ingresos de membresía para el primer trimestre del año fiscal 2022 aumentaron 11.2% a
$ 14,8 millones.


?Whole gross margins (internet merchandise gross sales much less related value of products offered)
elevated 11.9% over the prior-year interval, and merchandise gross earnings as a
p.c of internet merchandise gross sales had been 16%, a lower of 10 foundation factors (0.1%)
from the identical interval within the prior 12 months.

?La utilidad operativa para el primer trimestre del año fiscal 2022 fue $ 46,0 millones, un aumento del 3,3%, o $ 1,5 millones, en comparación con el primer trimestre del año fiscal 2021.


?We recorded a $1.4 million achieve in Different earnings (expense), internet, primarily from
a $2.7 million achieve from the sale of Aeropost, Inc., partially offset by a $1.9
million loss from overseas foreign money transactions, within the first quarter of fiscal
2022 in comparison with a $1.5 million internet foreign money loss in the identical interval final 12 months.
The achieve from the sale of Aeropost, internet of tax, resulted in a $1.5 million internet
earnings achieve and contributed $0.05 to fundamental and diluted internet earnings per share in
the primary quarter of fiscal 2022.

?Nuestra tasa impositiva efectiva aumentó en el primer trimestre del año fiscal 2022 al 34,1 % desde el 32,9 % en el primer trimestre del año fiscal 2021, principalmente relacionado con cambios en posiciones fiscales inciertas.


?Web earnings attributable to PriceSmart for the primary quarter of fiscal 2022 was
$30.5 million, or $0.98 per diluted share, in comparison with $27.7 million, or $0.90
per diluted share, within the first quarter of fiscal 2021.



COMPARACIÓN DE LOS TRES MESES TERMINADOS 30 DE NOVIEMBRE DE 2021 y 2020


The next dialogue and evaluation compares the outcomes of operations for the
three-month interval ended on November 30, 2021 with the three-month interval ended
on November 30, 2020 and needs to be learn at the side of the consolidated
monetary statements and the accompanying notes included elsewhere on this
report. Except in any other case famous, all tables on the next pages current U.S.
greenback quantities in hundreds. Sure percentages introduced are calculated utilizing
precise outcomes previous to rounding.





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Web Merchandise Gross sales

The next tables point out the online merchandise membership gross sales within the segments in
which we function and the proportion progress in internet merchandise gross sales by section
through the three months ended November 30, 2021 and November 30, 2020.

                                                Three Months Ended
                                    November 30, 2021                  November 30, 2020
                                               Improve
                                  % of internet       from                             % of internet
                        Quantity     ?gross sales     prior 12 months   Change      Quantity      ?gross sales
Central America        $ 560,596     59.4 %  $     75,556   15.6 %  $    485,040     57.8 %
Caribbean                268,334     28.4          13,728    5.4         254,606     30.4
Colombia                 115,113     12.2          16,390   16.6          98,723     11.8
Web merchandise gross sales  $ 944,043    100.0 %  $    105,674   12.6 %  $    838,369    100.0 %

Comparación de tres meses terminados 30 de noviembre de 2021 y 30 de noviembre de 2020


General, whole internet merchandise gross sales grew 12.6% for the primary quarter. The
improve resulted from an 11.3% improve in transactions and a 1.2% improve in
common ticket. Transactions characterize the overall variety of visits our Members
make to our warehouse golf equipment and Click on & Go™ curbside pickup and supply service
transactions. Common ticket represents the quantity our Members spend on every
go to or Click on & Go™ order. We had 49 golf equipment in operation as of November 30, 2021
in comparison with 46 golf equipment as of November 30, 2020.

Web merchandise gross sales in our Central America section elevated 15.6% for the
three-months ended November 30, 2021. The rise had a 900 foundation level (9.0%)
optimistic impression on whole internet merchandise gross sales progress. All markets inside this
section had optimistic internet merchandise gross sales progress for the three-month interval. We
added one new membership to the section when in comparison with the comparable prior-year
intervals. We opened our fifth membership in Guatemala in October 2021.

Web merchandise gross sales in our Caribbean section elevated 5.4% for the primary
quarter. The rise for the quarter had a 160 foundation level (1.6%) optimistic
impression on internet merchandise gross sales progress. Our Dominican Republic market continued
its sturdy efficiency within the quarter with 16.8% progress. Our Aruba and Jamaica
markets additionally confirmed sturdy efficiency this quarter with 12.4% and 10.7% progress,
respectively. This sturdy efficiency was offset by our Trinidad market which
had declines in internet merchandise gross sales for a similar interval. Trinidad gross sales had been
adversely affected by our measured method to rebalance our merchandise combine
following the reopening of the economic system from the pandemic restrictions, and we
usually proceed to handle our imports to be consistent with the quantities of U.S.
{dollars} we count on to supply in Trinidad. Web merchandise gross sales progress for
Trinidad improved through the first quarter of fiscal 12 months 2022 in comparison with the
fourth quarter of fiscal 2021 because the Trinidad authorities lifted restrictions on
gross sales of non-essential merchandise, however gross sales have nonetheless not returned to the
stage we achieved within the first quarter of fiscal 2021. Check with "Administration's
Dialogue & Evaluation - Elements Affecting Our Enterprise" for extra info
concerning the impression on us of the illiquidity of the Trinidad greenback.

Ventas netas de mercadería en nuestro Colombia segmento aumentó 16.6% para el primer trimestre. Este aumento tuvo un impacto positivo de 200 puntos básicos (2,0%) en el crecimiento whole de las ventas netas de mercancías. El principal impulsor del aumento de los ingresos del trimestre fue la adición de dos clubes al segmento en comparación con el período comparable del año anterior. Abrimos nuestro octavo membership en
Colombia en Diciembre de 2020 y nuestro noveno membership en Colombia en noviembre 2021.

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The next desk signifies the impression that foreign money trade charges had on our
internet merchandise gross sales in {dollars} and the proportion change from the three-month
interval ended November 30, 2021. The time period "foreign money trade charges" refers back to the
foreign money trade charges we use to transform internet merchandise and comparable internet
merchandise gross sales for all nations the place the purposeful foreign money is just not the
U.S. greenback into U.S. {dollars}. We calculate the impact of modifications in foreign money
trade charges because the distinction between present interval actions translated
utilizing the present interval's foreign money trade charges and the comparable prior 12 months
interval's foreign money trade charges. We consider the disclosure of the consequences of
foreign money trade fee fluctuations on our outcomes permits buyers to
perceive higher the Firm's underlying efficiency.

                               Foreign money trade fee fluctuations for the
                                            Three months ended
                                            November 30, 2021
                               Quantity                                    % change
Central America        $              (6,642)                               (1.4) %
Caribbean                                 874                                 0.4
Colombia                              (2,649)                               (2.7)
Web merchandise gross sales  $              (8,417)                               (1.0) %

En normal, los efectos de las fluctuaciones monetarias dentro de nuestros mercados tuvieron un $ 8,4 millones, o 100 puntos básicos (1,0%), impacto negativo en las ventas netas de mercancías para el trimestre finalizado 30 de noviembre de 2021.


Foreign money fluctuations had a $6.6 million, or 140 foundation level (1.4%), destructive
impression on internet merchandise gross sales in our Central America section for the quarter
ended November 30, 2021. These foreign money fluctuations contributed roughly
80 foundation factors (0.8%) of the overall destructive impression on whole internet merchandise
gross sales for the present interval. The Costa Rica Colón depreciated considerably
towards the greenback as in comparison with the identical three-month interval a 12 months in the past, and
was a big issue within the contribution to the unfavorable foreign money
fluctuations on this section.

Foreign money fluctuations had a $0.9 million, or 40 foundation level (0.4%), optimistic
impression on internet merchandise gross sales in our Caribbean section for the quarter ended
November 30, 2021. These foreign money fluctuations contributed roughly 10
foundation factors (0.1%) of optimistic impression on whole internet merchandise gross sales for the
interval. The Dominican Republic skilled foreign money appreciation in comparison
to the identical interval final 12 months.

Foreign money fluctuations had a $2.6 million, or 270 foundation level (2.7%), destructive
impression on internet merchandise gross sales in our Colombia section for the quarter. These
foreign money fluctuations contributed roughly 30 foundation factors (0.3%) of the
whole destructive impression on whole internet merchandise gross sales for the quarter.

Ventas de mercancías comparables


We report comparable internet merchandise gross sales on a "similar week" foundation with 13 weeks
in every quarter starting on a Monday and ending on a Sunday. The intervals are
established initially of the fiscal 12 months to supply as shut of a match
as attainable to the calendar month and quarter that's used for monetary
reporting functions. This method equalizes the variety of weekend days and
weekdays in every interval for improved gross sales comparability, as we expertise greater
merchandise membership gross sales on the weekends. Every of the warehouse golf equipment used within the
calculations was open for at the least 13 ½ calendar months earlier than its outcomes for
the present interval had been in contrast with its outcomes for the prior interval. As a
consequence, gross sales associated to one among our warehouse golf equipment opened throughout calendar 12 months
2021 won't be used within the calculation of comparable gross sales till they've
been open for at the least 13 ½ months. Subsequently, comparable internet merchandise gross sales
consists of 46 warehouse golf equipment for the thirteen-week interval ended November 28,
2021.



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Las siguientes tablas indican las ventas netas de mercadería comparables en los segmentos reportables en los que operamos y los cambios porcentuales en las ventas netas de mercadería por segmento durante el período de trece semanas finalizado 28 de noviembre de 2021 y 29 de noviembre de 2020 en comparación con el año anterior.

                                                   13 Weeks Ended
                                       November 28, 2021          November 29, 2020
                                     % Improve/(lower)      % Improve/(lower)
                                         in comparable              in comparable
                                     internet merchandise gross sales      internet merchandise gross sales
Central America                                    14.1 %                    (0.7) %
Caribbean                                           5.0                        9.9
Colombia                                          (2.8)                        8.6
Consolidated comparable internet
merchandise gross sales                                   9.4 %                      3.6 %

Comparación de períodos de trece semanas finalizados 28 de noviembre de 2021 y 29 de noviembre de 2020


Comparable internet merchandise gross sales for these warehouse golf equipment that had been open for at
least 13 ½ months for some or all the thirteen-week interval ended November 28,
2021 elevated 9.4%.

Comparable internet merchandise gross sales in our Central America section elevated 14.1%
for the thirteen-week interval ended November 28, 2021. All of our markets in
Central America had optimistic comparable internet merchandise gross sales progress and this
improve contributed roughly 820 foundation factors (8.2%) of optimistic impression in
whole comparable merchandise gross sales for the interval.

Comparable internet merchandise gross sales in our Caribbean section elevated 5.0% for the
thirteen-week interval ended November 28, 2021. The rise contributed
roughly 150 foundation factors (1.5%) of optimistic impression on whole comparable
merchandise gross sales for the interval.

Our Dominican Republic market continued its sturdy efficiency within the
thirteen-week interval with 16.8% comparable gross sales progress. Our Aruba and Jamaica
markets additionally confirmed sturdy efficiency this quarter with 12.9% and seven.7%
comparable gross sales progress, respectively. This sturdy efficiency was offset by our
Trinidad market, which declined in comparable internet merchandise gross sales by 6.2% for
the thirteen-week interval. Trinidad gross sales had been adversely affected throughout most of
the primary quarter as a result of we restricted merchandise shipments to the market as a consequence of
the continued U.S. greenback illiquidity scenario. Check with "Administration's Dialogue
& Evaluation - Elements Affecting Our Enterprise" for extra dialogue on the Trinidad
illiquidity scenario.

Comparable internet merchandise gross sales in our Colombia section decreased 2.8% for the
thirteen-week interval ended November 28, 2021. This lower contributed
roughly 30 foundation factors (0.3%) of destructive impression in whole comparable
merchandise gross sales for the interval. The lower in Colombia through the present
quarter was primarily because of the overseas foreign money devaluation and gross sales
transfers from present golf equipment included within the comparable internet merchandise gross sales
calculation to new golf equipment not included within the calculation.

Las siguientes tablas ilustran el impacto que tuvieron los cambios en las tasas de cambio de moneda extranjera en nuestras ventas de mercancías comparables en dólares y el cambio porcentual para el período de trece semanas terminado 28 de noviembre de 2021.

                                        Foreign money Trade Fee Fluctuations for the
                                                    13 Weeks Ended
                                                     November 28, 2021
                                                Quantity               % change
Central America                         $               (6,800)             (1.4) %
Caribbean                                                   867               0.3
Colombia                                                (2,538)             (2.5)
Consolidated comparable internet
merchandise gross sales                       $               (8,471)             (1.0) %




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En normal, la mezcla de fluctuaciones de divisas dentro de nuestros mercados tuvo un $ 8,5 millones, o un impacto negativo de 100 puntos básicos (1,0 %) en las ventas netas de mercancías comparables para el período de trece semanas finalizado 28 de noviembre de 2021.


Foreign money fluctuations inside our Central America section contributed
roughly 80 foundation factors (0.8%) of destructive impression in whole comparable
merchandise gross sales for the thirteen-week interval. Our Costa Rica market was the
principal contributor because the market skilled foreign money devaluation when in comparison with
the identical interval final 12 months.

Foreign money fluctuations inside our Caribbean section contributed roughly 10
foundation factors (0.1%) factors of optimistic impression in whole comparable merchandise
gross sales for the thirteen-week interval. Our Dominican Republic market skilled
foreign money appreciation, which was partially offset by our Jamaica market, which
skilled foreign money devaluation when in comparison with the identical interval final 12 months.

Foreign money fluctuations inside our Colombia section contributed roughly 30
foundation factors (0.3%) of destructive impression in whole comparable merchandise gross sales for
the thirteen-week interval. This displays the motion of the Colombian peso's
overseas foreign money trade fee when in comparison with the identical interval a 12 months in the past.

Ingresos de membresía


Membership earnings is acknowledged ratably over the one-year lifetime of the
membership.

                                                        Three Months Ended
                                                   November 30,                           November 30,
                                                       2021                                   2020
                                                                        Membership
                                            Improve                   ?earnings % to
                                              from                   ?internet merchandise
                              Quantity       prior 12 months    % Change       ?membership gross sales          Quantity
Membership earnings -
Central America             $     8,776   $        901      11.4 %            1.6  %     $        7,875
Membership earnings -
Caribbean                         3,973            262       7.1              1.5                 3,711
Membership earnings -
Colombia                          2,042            329      19.2              1.8                 1,713

Ingresos de membresía – Whole $ 14,791 $ 1,492 11,2 %

1,6 % $ 13,299


Variety of accounts -
Central America                 917,929         78,542       9.4 %                              839,387
Variety of accounts -
Caribbean                       432,144          4,273       1.0                                427,871
Variety of accounts -
Colombia                        341,412         27,252       8.7                                314,160
Variety of accounts -
Whole                         1,691,485        110,067       7.0 %                            1,581,418


Comparación de tres meses terminados 30 de noviembre de 2021 y 30 de noviembre de 2020


The variety of Member accounts as of November 30, 2021 was 7.0% greater than the
prior 12 months interval. Membership earnings elevated 11.2% over the three-month interval
ended November 30, 2021, in comparison with the prior-year interval.

Membership earnings elevated throughout all of our working segments within the three
months ended November 30, 2021. The consolidated improve in membership earnings
is because of an rising membership base for the reason that begin of fiscal 12 months 2021.
Since August 31, 2021, all segments have elevated their membership base.
Central America had the most important improve in membership within the first three months
of fiscal 12 months 2022, with 9.4% progress, due primarily to the opening of our fifth
membership in Guatemala in November 2021, adopted by Colombia with an 8.7% improve
due primarily to the opening of our ninth membership in that nation and the Caribbean
with a 1.0% improve.



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We now provide the Platinum Membership program in all areas the place PriceSmart
operates. The annual price for a Platinum Membership in most markets is
roughly $75. The Platinum Membership program gives Members with a 2%
rebate on most objects, as much as an annual most of $500. We report the two% rebate
as a discount on internet merchandise gross sales on the time of the gross sales transaction.
Platinum Membership accounts are 6.5% of our whole membership base as of
November 30, 2021, a rise from 5.3% as of November 30, 2020. Platinum
Members are likely to have greater renewal charges than our Diamond Members.

Our trailing twelve-month renewal fee was 89.0% and 81.9% for the intervals ended
November 30, 2021 and November 30, 2020, respectively. The COVID-19 pandemic
induced a lower in in-club site visitors within the first quarter of fiscal 12 months 2021,
leading to fewer in-club visits and thus fewer renewals as most of our
renewals happen within the warehouse membership. Nevertheless, roughly 15% and 11% of our
membership sign-ups had been accomplished utilizing our on-line platform for the three-month
intervals ended November 30, 2021 and November 30, 2020, respectively. Our on-line
platform facilitates capturing knowledge and gives the chance for computerized
renewal of memberships, in addition to bettering our digital reference to our
Members.

Different Income

Different income primarily consists of non-merchandise income from freight and
dealing with charges generated from {the marketplace} and casillero operations we offered in
October 2021, interest-generating portfolio from our co-branded bank cards,
and rental earnings from working leases the place the Firm is the lessor.

                                                 Three Months Ended
                                       November 30, 2021                 November 30, 2020
                                  Improve (lower) from
                         Quantity          ?prior 12 months         % Change         Quantity
Non-merchandise income  $ 3,307  $                 (9,348)   (73.9) %  $            12,655
Miscellaneous earnings       2,046                        549     36.7                  1,497
Rental earnings                635                       (96)   (13.1)                    731
Different income            $ 5,988  $                 (8,895)   (59.8) %  $            14,883

Comparación de tres meses terminados 30 de noviembre de 2021 y 30 de noviembre de 2020


The first driver of the lower in different income for the quarter is because of
the sale of our Aeropost subsidiary and its market and casillero operations
on October 1, 2021. For extra info on the outcomes of the
disposition, seek advice from "Merchandise 1. Monetary Statements: Notes to Consolidated
Monetary Statements, Notice 2 - Abstract of Important Accounting Insurance policies."



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