An increase in sales helped the San Diego-based shopping warehouse company's profits rise on a year-over-year basis.
Net income was $28.3 million in the second quarter compared to $24.9 million in the second quarter of fiscal 2013.
However, an 11% year-over-year revenue increase to $674 million was not what analysts had predicted. Expectations were that PriceSmart would bounce back after a troubling start to the year and record higher revenues of $678.91 million.PriceSmart also saw a gross profit margin decrease of 19 basis points to 14.5% due to a decline in warehouse club margins. The reduction in net warehouse margins resulted in a 16 basis points drop. Must Read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. PSMT data by YCharts
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.