PriceSmart, Inc.’s PSMT soft comparable net merchandise sales (comps) trend continued for the fourth straight month in July. Apparently, comps for the four weeks ended Jul 26, 2020, fell 4.5% for 42 warehouse clubs. Comps were hurt by foreign-currency fluctuations to the tune of $8.3 million or 3.6%. Prior to this, comps had fallen 4.9%, 6.7% and 19.2% in June, May and April, respectively. However, we note that the rate of decline has decelerated on a sequential basis.
Comps in July were negative across certain markets in Central America and Colombia, while the metric was positive in the Caribbean market. The company experienced weak comps mainly in Costa Rica, Panama and Guatemala due to the mounting coronavirus cases and related restrictions, in addition to the impact of sales being transferred to new clubs in Guatemala and Panama. The San Diego, CA-based company informed that roughly 100 club days were