PriceSmart Inc. (NASDAQ:PSMT) Q2 2020 Earnings Conference Call - Final Transcript

Apr 09, 2020 • 12:00 pm ET

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PriceSmart Inc. (NASDAQ:PSMT) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions] First question comes from Rodrigo Echagaray of Scotiabank. Please proceed.

Analyst
Rodrigo Echagaray

Thank you, operator and thanks everyone for the call, and congrats Michael on your new role. I would say, on my end, I'd like to perhaps hear your thoughts on what we take for you to revisit store openings. And I guess more specifically is this related more to the temporary disruptions on COVID-19 or is it more related to structural concerns with regards to the region where you operate in terms of the macro short to medium-term. And I guess, the second question would be on the e-commerce front. What kind of groups are you seeing in the past few days, any color that you can share with us will be great? Thank you.

Executive
Sherry S. Bahrambeygui

Good morning, Rodrigo. So, if I understand your first question was basically our decision to suspend some of the store openings or the club openings, and you wanted a little color about -- around that, correct.

Analyst
Rodrigo Echagaray

Yeah. I mean, I guess, how are you thinking about that. I mean, I guess, I'm trying to get a sense on, are we perhaps being obviously responsible and cautious for obvious reasons, but once disruptions cease and everything goes back to "normal" then are we looking at those store openings being back on the pipeline quickly, or is it something that it will take a few months until you feel comfortable putting those back on the pipeline?

Executive
Sherry S. Bahrambeygui

Well, let me put it to this way. Before the pandemic, we were completely on track for those openings. So, it wasn't anything structural or in terms of the markets themselves that led us to decide not to do it. It was the pandemic and then of course the resulting impact of the pandemic can and may have on these markets going forward, which is really the part that is the big unknown for all of us at this point. So with that kind of a variable at play the best answer I can give you is that we're just monitoring it. We're trying to get the best information we can and assess what the impact on our markets are. And then at the appropriate time, we will move forward. So as of now it seems that the most prudent thing to do in the face of this kind of unexpected event was to suspend that and preserve capital and focus on delivering our best performance for our members with a clause that we have in the markets where we exist.

Analyst
Rodrigo Echagaray

Got it.

Executive
Sherry S. Bahrambeygui

Your second question related to e-commerce growth.

Analyst
Rodrigo Echagaray

Yeah.

Executive
Sherry S. Bahrambeygui

E-commerce, so it's hard to quantify. Again this is all happening so quickly. I can tell you anecdotally that the response we're getting, we track social media now and we're much more connected to our members digitally. We're seeing the response and the reaction to having more online presence, the fact that our members can go now online and see our products,