Strong Top-Line Growth
Net merchandise sales and total revenue reached almost $1.4 billion; net merchandise sales increased 10.6% year-over-year (9.5% in constant currency). Comparable net merchandise sales increased 8.0% (6.9% in constant currency).
Improving Transaction Dynamics
Average sales ticket grew 2.1% and transactions increased 8.4% year-over-year; average price per item rose 1.8% while items per basket remained relatively flat.
Regional Outperformance — Colombia
Colombia delivered exceptional growth with net merchandise sales up 27.8% (15.0% in constant currency) and comparable net merchandise sales up 27.9% (14.7% in constant currency), contributing ~320 basis points to consolidated comparable growth.
Regional Strength — Central America and Caribbean
Central America net merchandise sales increased 9.6% (9.2% cc) with comps +5.4% (5.1% cc) contributing ~320 bps to consolidated comps; Caribbean net merchandise sales increased 5.7% (7.8% cc) with comps +5.6% (7.7% cc) contributing ~160 bps.
Category Growth
Food sales grew ~11.3%, non-foods ~7.2%, food service & bakery ~10.1%, and health services (optical/audiology/pharmacy) ~17.8% year-over-year.
Membership Progress and Monetization
Membership accounts grew 6.7% year-over-year to over 2 million; 12-month renewal rate 89.3%. Platinum (premium) accounts increased to 19.3% of base from 14% a year ago, and membership income as a percent of revenue rose to 1.7% from 1.6%.
Digital Channel Momentum
Digital channel sales reached $89.8 million, up 29.4% year-over-year and representing 6.6% of net merchandise sales. Website/app orders grew 18.1% with average transaction value up 10.1%. 73% of members have an online profile and 27.1% have purchased online.
Supply Chain & Distribution Advances
Panama facility adapted for cold merchandise; new distribution center began operations in Guatemala; plans to open DCs in Trinidad, Colombia and the Dominican Republic; third-party consolidation in China underway; RELEX and e2open implementations progressing to improve inventory and trade management.
Financial and Profitability Improvements
Operating income increased 8% to $62.9 million; net income rose to $40.2 million ($1.29 diluted EPS) from $37.4 million ($1.21); adjusted EBITDA was $86.9 million, up 9.8% year-over-year. Gross margin as a percent of net merchandise sales remained steady at 15.9% and total revenue margin improved 30 basis points to 17.7%.
Cash Flow and Liquidity
Ended quarter with $249.6 million cash and cash equivalents plus ~$114.2 million short-term investments. Net cash provided by operating activities was $71.2 million, up $32.7 million year-over-year.
Real Estate Expansion Pipeline
Purchased land for new clubs: La Romana (Dominican Republic), Montego Bay and South Camp Road (Jamaica), and Ciudad Quesada (Costa Rica). Plan to open four new clubs in FY2026 to reach ~60 clubs and progressing on entry into Chile with two prospective sites and a hired country GM.
Technology & Operational Upgrades
Completed ELERA point-of-sale roll-out in English-speaking Caribbean; migrating mobile app to native iOS/Android; initiating Workday HCM — all intended to improve member and employee experience and operational efficiency.