Did Expanding Into Quetzaltenango Just Shift PriceSmart's (PSMT) Central America Growth Narrative?

• In August 2025, PriceSmart, Inc. opened its seventh warehouse club in Guatemala, expanding operations into Quetzaltenango and bringing its total club count to 56 across several regions.
• This addition marks PriceSmart's continued push into Central America, further extending its reach beyond the capital and strengthening its supply chain logistics in the country.
• To understand how the Quetzaltenango opening may shape PriceSmart's growth outlook, we'll analyze its impact on the broader investment narrative.

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PriceSmart Investment Narrative Recap

To be a PriceSmart shareholder, you need to believe that disciplined expansion into under-served regions, such as the recent entry into Quetzaltenango, strengthens its long-term growth story by broadening market reach and operational efficiencies. This latest club opening may modestly boost top-line momentum and supply chain connectivity, but is unlikely to materially shift the most important short-term catalyst: ongoing club rollouts in high-growth cities. The expansion does not directly mitigate the biggest near-term risk, currency liquidity challenges in key markets like Trinidad and Honduras.

Of the company’s recent announcements, the Q3 2025 earnings release is especially relevant. The report highlighted steady revenue and net income growth year-over-year, which supports the view that disciplined club expansion, even outside Guatemala City, complements PriceSmart’s focus on sustaining earnings and operational resilience, the core of its current growth catalyst. But with heavy reliance on imported goods and volatile regional FX markets, investors must weigh long-term opportunity against the pressures of cross-border commerce.

However, investors should also be aware of how persistent currency conversion issues could...

Read the full narrative on PriceSmart (it's free!)

PriceSmart's narrative projects $6.9 billion revenue and $209.1 million earnings by 2028. This requires 10.1% yearly revenue growth and a $66.5 million earnings increase from $142.6 million.

Uncover how PriceSmart's forecasts yield a $111.67 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Five distinct fair value estimates from the Simply Wall St Community ranged widely from US$886,922 to US$8,869,220 per share. With expansion initiatives in focus, broad differences in expectations reflect varied assumptions on how aggressively PriceSmart’s regional growth and FX risks could affect results, consider how these contrasting viewpoints might shape your own.

Explore 5 other fair value estimates on PriceSmart - why the stock might be a potential multi-bagger!

Build Your Own PriceSmart Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PriceSmart research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free PriceSmart research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PriceSmart's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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