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PriceSmart 2Q Profit Climbs On Improved Sales

The Associated Press

SAN DIEGO (AP) — PriceSmart Inc. said Wednesday that its profit rose 34 percent in the fiscal second quarter on improved sales.

The warehouse club operator earned $12.7 million, or 43 cents per share. That compares with $9.5 million, or 33 cents per share, a year ago.

Sales increased 14 percent to $334.8 million from $293.8 million for the period ended Feb. 28.

Same-store warehouse sales for the period ended March 29 climbed 8.5 percent. Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Warehouse club operators have benefited from stronger sales during the recession as consumers worried about the economy and unemployment have looked to trim their shopping costs and get more value for their money by purchasing the bulk items typically found at such stores.

PriceSmart operates warehouse club stores in Central America and the Caribbean. It has 25 warehouse clubs in 11 countries and one in the U.S. Virgin Islands.

Shares jumped $1.23, or 6.7 percent, to $19.69 in morning trading.