- Sales Growth: Net merchandise sales hit $1.4B, up 10.6% YoY, with Colombia leading at 27.8% growth.
- Membership Expansion: Accounts surpassed 2M, +6.7% YoY, with Platinum tier rising to 19.3% (vs. 14% prior year).
- Digital Channel Surge: Online sales soared 29.4% to $89.8M, reflecting e-commerce momentum.
- Profitability Strength: Operating income rose 8% to $62.9M, and adjusted EBITDA grew 9.8% to $86.9M.
- Liquidity Position: Ended with $249.6M cash/cash equivalents and $114.2M short-term investments, up from prior year.
Regional Performance
The company's regional performance was mixed, with Central America sales increasing 9.6%, or 9.2% in constant currency; the Caribbean, 5.7%, or 7.8% in constant currency; and Colombia, 27.8%, or 15% in constant currency. Colombia's strength was attributed to a combination of internal and external factors, according to management. The company's membership accounts grew 6.7% year-over-year to over 2 million accounts, with a 12-month renewal rate of 89.3%.
Operational Highlights
The company is advancing on its real estate expansion, supply chain transformation, and technology investments, including new club openings in the Dominican Republic, Jamaica, and Costa Rica, and distribution centers in Colombia, Dominican Republic, and Trinidad. Digital channel sales reached $89.8 million, up 29.4% year-over-year. Management noted that investments in real estate, supply chain infrastructure, and technology are positioning the company for sustained growth.
Valuation and Outlook
With a P/E Ratio of 26.73 and an EV/EBITDA of 13.9, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at 10.7%. The company's strong cash position, with cash, cash equivalents, and restricted cash totaling $249.6 million, plus approximately $114.2 million of short-term investments, provides a solid foundation for future investments. As management noted, the team is focused on delivering value to members and driving long-term performance.
Cash Flow and Balance Sheet
Net cash provided by operating activities reached $71.2 million for the first 3 months of fiscal year 2026, an increase of $32.7 million versus the prior year period. The increase is primarily due to $18.7 million of overall net positive changes in operating assets and liabilities. The company's net debt to EBITDA ratio is negative, indicating a healthy balance sheet.