PriceSmart Inc. (NASDAQ:PSMT) Q3 2019 Earnings Conference Call - Final Transcript

Jul 10, 2019 • 08:00 pm ET

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PriceSmart Inc. (NASDAQ:PSMT) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
Sherry S. Bahrambeygui

something that we feel can perform at the levels that we're expecting Veraguas to perform, it really does open our minds up to other geographic areas, other towns that have not been the subject of our focus so much in the past, because the property is less expensive in these areas. The footprint can be a bit smaller. If we can tailor and meet the needs of our members in these locations, it does open doors, it opens doors for us to consider markets that really haven't been on our radar screen before, but I don't want to overstate it because we really want to make sure we're doing this right and it's performing as expected and based on those results we're going to build on the positives. But I do see there is a potential opportunity for good growth.

Analyst
Jon Braatz

Yup. All right. Thanks, Sherry.

Executive
Sherry S. Bahrambeygui

My pleasure.

Operator
Operator

Our next question comes from Ronald Bookbinder of IFS Securities. Please proceed.

Analyst
Ronald Bookbinder

Wow. Good afternoon, and thank you for taking my questions. Thank you for the additional color on the merchandise gross margin, but why the lower margin -- lower gross margin on the Aeropost business versus last year?

Executive
Maarten O. Jager

Ron, I'm going to have to get back to you on that one.

Analyst
Ronald Bookbinder

Okay. No problem.

Executive
Maarten O. Jager

Later this afternoon.

Analyst
Ronald Bookbinder

Okay.

Executive
Sherry S. Bahrambeygui

To give you a piece of information, we've discussed the fact that earlier in this process as we're building our pricesmart.com, we are using the Aeropost.com site to test certain things before we migrate over to the marketplace -- I'm sorry to pricesmart.com. so there has been some effort to drive some of the activity over to pricesmart.com once we've proven that something is working well. So what we're finding, frankly, Ronald, is that the activities of Aeropost.com and PriceSmart are becoming a little bit more blurred as it should over time. So I don't think we've called out specifically that information, but Maarten can get back to you following that, but I was trying to give you some background on what's happening.

Analyst
Ronald Bookbinder

Okay. And in Colombia, right now you're having just a tougher FX situation down there, but what is the overall view of Colombia? It doesn't seem like you guys have opened a store there since Chia in September of 2016, with these new smaller format stores could we see a ramping up in Colombia? And do you guys still have a real estate office in Bogota?

Executive
Sherry S. Bahrambeygui

We are active in pursuing real estate and in looking for opportunities to grow in Colombia. We believe in that market. No doubt the FX fluctuation and the currency devaluation there has been a challenge for us. We're well received there, membership is strong, the -- if you look in constant currency, our same-store sales comps are doing well. The issue for us right now is that we're trying to win -- as you know, real estate is obviously a challenge there. But yes, with a small format, it opens up more opportunities for us