Forward-looking statements

This Quarterly Report on Form 10-Q contains forward-looking statements
concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we")
anticipated future revenues and earnings, adequacy of future cash flows,
omni-channel initiatives, proposed warehouse club openings, the Company's
performance relative to competitors and related matters. These forward-looking
statements include, but are not limited to, statements containing the words
"expect," "believe," "will," "may," "should," "project," "estimate,"
"anticipated," "scheduled," "intend," and like expressions, and the negative
thereof. These statements are subject to risks and uncertainties that could
cause actual results to differ materially including, but not limited to: various
political, economic and compliance risks associated with our international
operations, adverse changes in economic conditions in our markets, natural
disasters, volatility in currency exchange rates and illiquidity of certain
local currencies in our markets, competition, consumer and small business
spending patterns, political instability, increased costs associated with the
integration of online commerce with our traditional business, whether the
Company can successfully execute strategic initiatives, our reliance on third
party service providers, including those who support transaction and payment
processing, data security and other technology services, cybersecurity breaches
that could cause disruptions in our systems or jeopardize the security of Member
or business information, cost increases from product and service providers,
interruption of supply chains, novel coronavirus (COVID-19) related factors and
challenges, exposure to product liability claims and product recalls,
recoverability of moneys owed to PriceSmart from governments, and other
important factors discussed under the captions "Item 1A. Risk Factors" and "Item
7. Management's Discussion and Analysis of Financial Condition and Results of
Operations" in our Annual Report on Form 10-K for the fiscal year ended August
31, 2021 filed with the United States Securities and Exchange Commission ("SEC")
on October 21, 2021. These risk factors may be updated from time to time in our
other filings with the SEC, which are accessible on the SEC's website
at www.sec.gov. Forward-looking statements speak only as of the date that they
are made, and the Company does not undertake to update them, except as required
by law. In addition, these risks are not the only risks that the Company faces.
The Company could also be affected by additional factors that apply to all
companies operating globally and in the U.S., as well as other risks that are
not presently known to the Company or that the Company currently considers to be
immaterial.



Overview

smart price exists to improve the lives and businesses of our members, employees and communities by reliably and consistently providing quality goods and valuable services at the lowest possible prices.

PriceSmart began operations in 1996 in San Diego, California, with the intent to
bring our U.S. style membership shopping warehouse club concept to emerging and
developing countries. We currently operate 50 warehouse clubs in Central
America, the Caribbean and Colombia. In all 13 markets, our Members are able to
engage with us on social media and shop on our e-commerce platform,
PriceSmart.com.

Member experience is our top priority. We rigorously limit the number of SKU's
in order to drive volume and leverage purchasing power for the benefit of our
Members. Our curated selection offers a combination of specialty items that are
imported and/or unique to our markets, locally and regionally sourced goods,
essential goods, direct-from-farm fresh produce and private label consumer
products under the brand "Member's Selection®". Our Member's Selection® offering
allows us to maintain key quality items at lower prices and provides the
opportunity to reduce supply chain risks. We also offer prepared foods and
fresh-baked goods. Most merchandise is available for online ordering through
PriceSmart.com and for delivery or contactless curbside pickup through our Click
& Go™ service. We also offer well-being services such as Optical, Pharmacy and
Audiology. Our clubs typically feature food courts and tire centers and
services. We are also a significant provider of goods to small businesses in our
markets that benefit from larger pack sizes and low pricing. We strive to
continually enhance the value of our membership such that the value of the goods
and services purchased and received by the Member far exceeds the cost of the
membership.

Our warehouse clubs range in sales floor size from approximately 30,000 to
60,000 square feet. Our larger clubs are typically located in and around densely
populated major cities that include a large penetration of consumers with
significant disposable income. Our smaller clubs tend to be in areas with less
population density, but where there are significant opportunities to serve the
population and supply and support businesses. We also have smaller format clubs
in urban areas where it is difficult to secure sufficient real estate at a
reasonable cost.


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We strategically invest in technology to improve member experience and convenience. We believe that technology allows us to access valuable data that supports our ability to increase efficiency and gain valuable insights about our members. We now offer digital membership and auto-renewal for the convenience of our members.

Our logistics and distribution infrastructure is key to maximizing efficiencies.
We revise and upgrade our logistics and distribution systems to capture
efficiencies as our business grows in sales volume, in geography and through
activity generated by e-commerce. We utilize regional distribution centers in
the U.S. and Costa Rica as well as several local distribution centers to
distribute merchandise efficiently and to create flexibility to mitigate the
risk of supply-chain disruption. We also seek to capture efficiencies by using
specialized distribution centers for produce and centralized production for
categories such as bakery and meat processing.
Purchasing land and constructing warehouse clubs is generally our largest
ongoing capital investment. Securing land for warehouse club locations is
challenging in several of our markets because suitable sites at economically
feasible prices are difficult to find. Ownership of our real estate in many of
our markets provides several advantages, including lower operating expenses,
flexibility to expand or otherwise enhance our buildings, long-term control over
the use of the property and potential increase of value in future years.
Although we prefer to own real estate, we sometimes lease our real estate when
leasing provides the best available opportunity.

Our warehouse clubs currently operate in emerging markets that historically have
had higher growth rates and lower warehouse club market penetration than the
U.S. market. In locations where we operate, we do not currently face direct
competition from U.S. membership warehouse club operators. However, we do face
competition from various local and international retail formats such as
hypermarkets, supermarkets, cash and carry, hard discounters, home improvement
centers, electronic retailers, specialty stores, convenience stores, traditional
wholesale distribution and online sales.
The number of warehouse clubs for each country or territory were as follows:

                         Number of           Number of
                      Warehouse Clubs     Warehouse Clubs
                     in Operation as of  in Operation as of
Country/Territory       May 31, 2022        May 31, 2021
Colombia                              9                   8
Costa Rica                            8                   8
Panama                                7                   7
Dominican Republic                    5                   5
Guatemala                             5                   4
Trinidad                              4                   4
Honduras                              3                   3
El Salvador                           2                   2
Nicaragua                             2                   2
Jamaica                               2                   1
Aruba                                 1                   1
Barbados                              1                   1
U.S. Virgin Islands                   1                   1
Totals                               50                  47


Our warehouse clubs, one regional distribution center and several smaller local
distribution centers are located in Latin America and the Caribbean, and our
corporate headquarters, U.S. buying operations and our larger regional
distribution center are located primarily in the United States. Our operating
segments are the United States, Central America, the Caribbean and Colombia.

We are currently constructing a smaller format warehouse club in the Hacienda
San Andrés area of San Miguel, El Salvador, approximately 100 miles east of the
capital city San Salvador, which is anticipated to open in the spring of 2023.
It will be our third club in El Salvador. In addition, we are proceeding with
the construction of a smaller format warehouse club in the affluent El Poblado
area of Medellín, Colombia. We expect to open this warehouse club, which will be
our second club in Medellín and the Company's tenth warehouse club in Colombia,
in the summer of 2023. Once these two new clubs are open, we will operate 52
warehouse clubs.



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We also export products to retailer in The Philippines and are looking to expand this business to other markets.

Factors affecting our business

Covid-19 pandemic

The COVID-19 pandemic has challenged us in many respects and continues to do so.
COVID-related and other supply and logistics constraints have continued to
adversely affect some merchandise categories and are expected to do so for the
foreseeable future. The pandemic continues to remain unpredictable in duration
and intensity, and we could see periodic reinstatements of stay-at-home orders
and other restrictions should infections increase significantly. In addition, we
are seeing adverse impacts on our suppliers in the Far East and at various
ports, causing delays and changes in transportation schedules. We expect
continued uncertainty in the supply chain and economies of our markets as a
result of the pandemic and anticipate volatility in employment trends, consumer
confidence and demand; shifts in consumer demands; volatility and liquidity of
foreign currency exchange rates; volatility of commodity prices; and possible
fiscal austerity measures taken by governments in our markets, which will likely
impact our results for the foreseeable future. For additional information, refer
to the risk factors discussed in Part I. "Item 1A. Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended August 31, 2021.
However, COVID has also presented us opportunities to improve how we do
business, how we serve our Members and how we treat our employees. COVID:
?Increased our focus on expanding local sourcing and near-shoring of goods that
we offer,
?Expedited our efforts to engage with Members online, including the launch of
PriceSmart.com, and
?Highlighted the importance of employee well-being and accelerated our decision
to ensure health coverage for all employees in our Company. We also are
establishing flexible schedules and hybrid work environments for office
employees in order to maximize efficiencies and provide opportunity for balance
in our employees' lives.

Global economic trends, exchange rate volatility and other factors affecting the business

Our sales and profits vary from market to market depending on general economic
factors, including GDP growth; consumer preferences; foreign currency exchange
rates; political policies and social conditions; local demographic
characteristics (such as population growth); the number of years we have
operated in a particular market; and the level of retail and wholesale
competition in that market. The economies of many of our markets are dependent
on foreign trade, tourism, and foreign direct investments. Global and local
travel restrictions and a general slow-down in global economic activity as a
result of COVID-19 have significantly impacted and may continue to impact the
economies in several of our markets and could cause significant declines in GDP
and employment and devaluations of local currencies against the U.S. dollar.

The current environment that we are operating in is characterized by global
supply chain disruption, high fuel and freight costs, inflation, significant
foreign currency devaluations and less predictable consumer behavior and
purchasing patterns due, in part, to COVID's impact on consumer lifestyles.
These factors have increased the complexity of managing our inventory flow and
business. During the last half of fiscal year 2021 and persisting into fiscal
2022, we saw several factors pressuring supply chains, including raw material
shortages, limited manufacturer capacity, factory labor shortages, container
shortages, port delays, and truck and driver shortages. These disruptions and
shortages continue to impact the timing of deliveries and are leading to higher
freight and merchandise costs. Despite all these issues, we continued to see
strong sales during the quarter. We are working to hold down and/or mitigate the
price increases passed on to the Members while maintaining the right inventory
mix to grow sales. One key mitigating factor has been our expanded network of
distribution centers, which has facilitated alternative routings of shipments,
increased throughput, and provided flexibility to more effectively mitigate
these challenges. We made strategic investments in inventory based on
anticipated demand and worked with our local vendors to source alternative
products in order to reduce out-of-stocks on high demand items that were
impacted by these disruptions or that were affected by electronic part
shortages. However, rapidly changing consumer preferences, long lead times, and
supply chain disruptions led to inventory build up in some of the discretionary
non-foods categories in our hardlines segment. We took significantly higher than
usual markdowns in the third quarter in these categories to sell through
out-of-season merchandise. We are planning to reduce our days on hand of
inventory to better adapt to and meet the changing demands of our Members. We
expect to face some margin pressure in the fourth quarter of fiscal 2022, but
significantly less than the third fiscal quarter, as we continue to right-size
our inventory and rebalance our inventory mix.



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Currency fluctuations can be one of the largest variables affecting our overall
sales and profit performance, as we have experienced in prior fiscal years,
because many of our markets are susceptible to foreign currency exchange rate
volatility. During the first nine months of fiscal year 2022 and 2021,
approximately 78.0% and 77.8%, respectively, of our net merchandise sales were
in currencies other than the U.S. dollar. Of those sales, 48.7% and 48.1%
consisted of sales of products we purchased in U.S. dollars for each period,
respectively.

A devaluation of local currency reduces the value of sales and membership income
that is generated in that country when translated into U.S. dollars for our
consolidated results. In addition, when local currency experiences devaluation,
we may elect to increase the local currency price of imported merchandise to
maintain our target margins, which could impact demand for the merchandise
affected by the price increase. We may also modify the mix of imported versus
local merchandise and/or the source of imported merchandise in an effort to
mitigate the impact of currency fluctuations. Information about the effect of
local currency devaluations is discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations - Net Merchandise
Sales and Comparable Sales."

Our capture of total retail and wholesale sales can vary from market to market
due to competition and the availability of other shopping options for our
Members. Demographic characteristics within each of our markets can affect both
the overall level of sales and future sales growth opportunities. Certain island
markets, such as Aruba, Barbados and the U.S. Virgin Islands offer us limited
upside for sales growth given their overall market size.

Political and other factors in each of our markets may have significant effects
on our business. For example, the civil unrest in Colombia paralyzed significant
portions of the country's infrastructure as roadblocks and riots disrupted
normal economic activity during the third quarter of fiscal 2021. Austerity and
tax reform measures for Colombia and other Latin American countries with high
national debt levels and income disparity pose a risk for political instability.
Similar unrest happened in Nicaragua and Honduras in 2018 and 2019,
respectively; Costa Rica also had a general strike against tax reform measures
that significantly impeded regular economic activity in 2018. Events of this
sort have, and may continue to have, an adverse effect on our business.

Our operations are subject to volatile weather conditions and natural disasters.
In November 2020, Hurricanes Eta and Iota brought severe rainfall, winds, and
flooding to a significant portion of Central America, especially Honduras, that
caused significant damage to parts of that country's infrastructure. Although
our warehouse clubs were not significantly affected and we were able to manage
our supply chain to keep our warehouse clubs stocked with merchandise, these
natural disasters could adversely impact our overall sales, costs and profit
performance in the future.

Periodically, we experience a lack of availability of U.S. dollars in certain
markets (U.S. dollar illiquidity), particularly in Trinidad. This can and has
impeded our ability to convert local currencies obtained through merchandise
sales into U.S. dollars to settle the U.S. dollar liabilities associated with
our imported products and to otherwise redeploy these funds in our Company. This
illiquidity also increases our foreign exchange exposure to any devaluation of
the local currency relative to the U.S. dollar. During fiscal year 2021, we
experienced significant limitations on our ability to convert Trinidad dollars
to U.S. dollars or other tradeable currencies.
As of May 31, 2022, our Trinidad subsidiary had Trinidad dollar denominated cash
and cash equivalents and short and long-term investments measured in U.S.
dollars of approximately $28.8 million, a decrease of $24.1 million from August
31, 2021 when these same balances were approximately $52.9 million and a
decrease of $71.7 million from the peak of $100.5 million as of November 30,
2020. The Trinidad central bank manages the exchange rate of the Trinidad dollar
with the U.S. dollar. While the Trinidad government has publicly stated it has
no intention to devalue the Trinidad dollar, it could in the future decide to
devalue the currency to improve market liquidity, resulting in a devaluation in
the U.S. dollar value of these cash and investments balances.


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In March 2022 the International Monetary Fund updated prior calculations and
estimated that the Trinidad dollar was over-valued between approximately 11.6%
and 20.4%. If, for example, a hypothetical 20% devaluation of the Trinidad
dollar were to occur, the value of our Trinidad dollar cash and investments
position, measured in U.S. dollars, would decrease by approximately $5.8
million, with a corresponding increase in Accumulated other comprehensive loss
reflected on our consolidated balance sheet. Separate from the Trinidad dollar
denominated cash and investments balances described above, as of May 31, 2022,
we had a U.S. dollar denominated monetary asset position of approximately $70.5
million in Trinidad (net of U.S. dollar denominated liabilities), which would
produce a gain from a potential devaluation of Trinidad dollars. If, for
example, a hypothetical 20% devaluation of the Trinidad dollar occurred, the net
effect on Other income (expense), net on our consolidated statement of
operations of revaluing these U.S. dollar denominated net monetary assets would
be an approximate $14.1 million gain. While we may pay premiums or enter into
financial transactions at a discount from the official government rate to
convert our Trinidad dollars into U.S. dollars, we use the official exchange
rate published by the Central Bank of Trinidad and Tobago to measure the U.S.
dollar equivalent of Trinidad dollar-based revenues, expenses, assets and
liabilities and the Trinidad dollar equivalent of U.S. dollar-based monetary
assets and liabilities for financial reporting purposes, as there are no other
reliable references available to translate or remeasure our revenues, expenses,
assets and liabilities.
While our balance of Trinidad dollars has been reduced significantly so far in
fiscal 2022, we have not yet converted all of our Trinidad dollars into U.S.
dollars. In response to these liquidity challenges in Trinidad, we have been
taking multiple actions, including but not limited to: raising sales prices on
imported goods in Trinidad due to increased costs of conversion of Trinidad
dollars to U.S. dollars and risks associated with continued illiquidity,
shifting to local sources of goods where appropriate, and entering into
financing arrangements such as the loan we obtained in December 2021 whereby we
received $25 million in U.S. dollars and will repay the balance in Trinidad
dollars (using a conversion rate fixed upon initial disbursement) over the
four-year life of the loan. Additionally, we significantly limited shipments of
goods from the U.S. to Trinidad during most of fiscal 2021 due to the
illiquidity of the Trinidad dollar and further reduced our shipments in the last
quarter of fiscal 2021 because of the government-imposed restrictions on sales
of non-essential items during that period driven by the pandemic. Although most
local restrictions have been lifted and liquidity of the Trinidad dollar has
improved in fiscal 2022, we continue to manage to a target level of imports in
Trinidad. So far in fiscal 2022, these self-imposed import limitations have been
generally in line with the needs of the market from a demand perspective.


Mission and corporate strategy

PriceSmart exists to improve the lives and businesses of our Members, our
employees, and our communities through the responsible delivery of the best
quality goods and services at the lowest possible prices. Our mission is to
serve as a model company, which operates profitably and provides a good return
to our investors by providing Members in emerging and developing markets with
exciting, high-quality merchandise sourced from around the world and valuable
services at compelling prices in safe U.S.-style clubs and through
PriceSmart.com. We prioritize the well-being and safety of our Members and
employees. We provide good jobs, fair wages and benefits, and the opportunity
for growth. We strive to treat our suppliers right and empower them when we can.
We conduct ourselves in a socially responsible manner as we endeavor to improve
the quality of the lives of our Members, their businesses and their communities,
while respecting the environment and the laws of all the countries in which we
operate. The annual membership fee enables us to operate our business with lower
margins than traditional retail stores. As we invest to increase our
technological capabilities, we are increasing our tools to drive sales and
operational efficiencies. We believe we are well positioned to blend the
excitement and appeal of our brick-and-mortar business with the convenience and
additional benefits of online shopping and services, and meanwhile, enhance
Member experience and engagement.

Growth

Looking to the future, our business is focused on three main growth drivers:

? Expand Real Estate Footprint with New Clubs and Distribution Facilities
?Increase Membership Value
?Drive Incremental Sales via PriceSmart.com and Enhanced Online, Digital and
Technological Capabilities



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I.Expand Real Estate Footprint with New Clubs and Distribution Facilities. We
continue to seek opportunities to expand our geographic footprint for
brick-and-mortar warehouse clubs. We plan to open a warehouse club in El
Salvador located in the city of San Miguel in the spring of 2023 and another
club in Medellín, Colombia in the summer of 2023. We continue to actively pursue
club growth in our markets and to evaluate opportunities in new markets. Our
growth strategy, as it pertains to real estate, includes physical distribution
centers of various types to support the flow of merchandise from the supplier to
the Member, be it sales generated from the clubs or through PriceSmart.com.
Also, the need for optionality in today's world has proven essential. Therefore,
we plan to make appropriate investments in our distribution network to maximize
efficiencies, minimize supply chain disruption, maximize the efficient use of
limited space in our warehouse clubs, and to provide optimal support for a
growing e-commerce business. In addition to our distribution center in Miami,
Florida, we also operate a regional distribution center in Costa Rica and are
actively considering others. During fiscal 2022 we doubled our network of
Produce Distribution Centers from two to four and are currently developing plans
for two more. In some cases, these facilities also provide the opportunity to
capture efficiencies by centralizing certain production activities, such as
bakery, meat processing, packaging and labeling.



II.Increase Membership Value. We are seeking to attract more Members and retain
our current Members by expanding the benefits of being a Member of PriceSmart,
whether through sales, services and/or convenience. As benefits grow and the
value of being a PriceSmart Member increases, adjustments to the membership fee
may be warranted. A larger membership base and higher membership fee contribute
to the bottom line of the business. We focus on growth of our membership base,
Member renewal rates and spend per Member as part of how we determine how
Members see our value. By adding more benefits that Members can only obtain with
us, we expect to see growth in the number of Members, which drives Membership
income and Merchandise sales. Recent examples of enhancements we have made to
the value of membership include: additional services such as the ability for all
of our Members to transact on PriceSmart.com; Click & Go™ curbside pickup and
delivery service in all of our clubs; and the implementation and expansion of
our Well-being initiative, which offers Optical services with free eye exams for
the Member and additional members of their families and deeply discounted
eyeglass frames; Audiology services with free hearing exams and deeply
discounted hearing aids; and Pharmacy, which provides a significant convenience
to our Members.

Another way we enhance Membership value is through our private label offering,
"Member's Selection®," a brand which is available only to PriceSmart Members. We
believe the Member's Selection® brand carries goodwill, and is recognized in our
markets for value. Private label also provides us the opportunity to source
quality items locally when appropriate. Select local sourcing has multiple
benefits including support of local communities in which we operate by
developing industry and creating direct and indirect jobs, mitigation of foreign
currency exchange risk, and reduced supply chain exposure. These initiatives
offer additional benefits and services for our Members whether they choose to
shop on-line, in-club, or both. During the first nine months of fiscal 2022, our
private label sales represented 24.2% of total merchandise sales, up from 21.7%
for fiscal year 2021, and we plan to continue to invest in the development of
additional private label products under the "Member's Selection®" brand.

III.Drive Incremental sales via PriceSmart.com and Enhanced Online, Digital and
Technological Capabilities. We recognize the growing expectation of consumers in
our markets for convenience. As a result, we continue to improve the
functionality of PriceSmart.com and to expand our product offerings available
online. We also build and apply technological tools to continue to learn more
about and strengthen our relationships with each of our Members. Using data
analytics, we have been able to provide our Members with enhancements to the
membership experience. PriceSmart.com and these tools provide the opportunity
for us to continually strengthen and expand the scope of our relationship with
each Member and offer incremental products and services in the future. Our
PriceSmart.com offering provides data that informs us regarding the potential
viability of new clubs in new areas and offers us options to serve and expand
into new markets without the need for a traditional brick & mortar club
location. We also invest in technology to capture operational efficiencies and
enhance our decision-making for the increasingly dynamic environment we are in.



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Financial highlights for the third quarter of fiscal 2022 included:

“Total revenue increased by 15.1% compared to the comparable period of the previous year.

?Net merchandise sales increased 16.5% over the comparable prior year period. We
ended the quarter with 50 warehouse clubs compared to 47 warehouse clubs at the
end of the third quarter of fiscal 2021. Foreign currency exchange rate
fluctuations impacted net merchandise sales negatively by 2.3% versus the
comparable three-month period.

?Comparable net merchandise sales (that is, sales in the 47 warehouse clubs that
have been open for greater than 13 ½ calendar months) for the 13 weeks ended May
29, 2022 increased 12.8%. Foreign currency exchange rate fluctuations impacted
comparable net merchandise sales negatively by 2.2%.

? Membership revenue for the third quarter of fiscal 2022 increased 7.8% to
$15.4 million.

?Total gross margins (net merchandise sales less associated cost of goods sold)
increased 4.0% over the prior-year period, and merchandise gross profits as a
percent of net merchandise sales were 14.2%, a decrease of 170 basis points
(1.7%) from the same period in the prior year.

?Operating profit for the third quarter of fiscal 2022 was $33.8 millioneither a decrease of 6.3%, or $2.2 millioncompared to the third quarter of fiscal 2021.

?We recorded a $2.5 million net currency loss from currency transactions in the
third quarter of fiscal 2022 compared to a $2.2 million net currency loss in the
same period last year.

?Our effective tax rate increased in the third quarter of fiscal 2022 to 33.7%
from 30.9% in the third quarter of fiscal 2021, primarily related to changes in
uncertain tax positions and changes in foreign currency value and related
adjustments.

?Net income attributable to PriceSmart for the third quarter of fiscal 2022 was
$19.3 million, or $0.62 per diluted share, compared to $22.5 million, or $0.73
per diluted share, in the third quarter of fiscal 2021.

Financial Highlights for the Nine Months Ended May 31, 2022 included:

“Total revenue increased by 12.3% compared to the comparable period of the previous year.

?Net merchandise sales increased 13.9% over the comparable prior year period. We
ended the first nine months of fiscal 2022 with 50 warehouse clubs compared to
47 warehouse clubs at the end of the third quarter of fiscal 2021. Foreign
currency exchange rate fluctuations impacted net merchandise sales negatively by
2.1% versus the comparable nine-month period.

?Comparable net merchandise sales (that is, sales in the 47 warehouse clubs that
have been open for greater than 13 ½ calendar months) for the 39 weeks ended May
29, 2022 increased 10.8%. Foreign currency exchange rate fluctuations impacted
comparable net merchandise sales negatively by 2.0%.

?Member revenue increased by 9.4% for $45.3 million.

?Total gross margins (net merchandise sales less associated cost of goods sold)
increased 8.8% over the prior-year period, and merchandise gross profits as a
percent of net merchandise sales were 15.3%, a decrease of 70 basis points
(0.7%) from the same period in the prior year.

?The operating result was $128.1 millionan increase of 2.0%, or $2.5 millioncompared to the first nine months of the 2021 financial year.

?We recorded a $6.1 million net currency loss from currency transactions in the
current nine-month period compared to a $4.0 million net currency loss in the
same period last year.

“Our effective tax rates for the first nine months of fiscal 2022 and 2021 were similar at 32.8% and 32.7%, respectively.

?Net income attributable to PriceSmart for the first nine months of fiscal 2022
was $81.2 million, or $2.63 per diluted share, compared to $78.5 million, or
$2.55 per diluted share, in the comparable prior year period.



COMPARISON OF THE THREE AND NINE MONTHS ENDED May 31, 2022 and 2021

The following discussion and analysis compares the results of operations for the
three-month and nine-month periods ended on May 31, 2022 with the three-month
and nine month-periods ended on May 31, 2021 and should be read in conjunction
with the consolidated financial statements and the accompanying notes included
elsewhere in this report. Unless otherwise noted, all tables on the following
pages present U.S. dollar amounts in thousands. Certain percentages presented
are calculated using actual results prior to rounding.





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Net Merchandise Sales

The following tables indicate the net merchandise club sales in the segments in
which we operate and the percentage growth in net merchandise sales by segment
during the three and nine months ended May 31, 2022 and May 31, 2021.

                                               Three Months Ended
                                       May 31, 2022                      May 31, 2021
                                               Increase
                                  % of net       ?from                          % of net
                        Amount     ?sales     ?prior year   Change    Amount     ?sales
Central America        $ 587,616     58.8 %  $      66,261   12.7 %  $ 521,355     60.8 %
Caribbean                290,441     29.1           51,118   21.4      239,323     27.9
Colombia                 120,954     12.1           24,154   25.0       96,800     11.3
Net merchandise sales  $ 999,011    100.0 %  $     141,533   16.5 %  $ 857,478    100.0 %


                                                 Nine Months Ended
                                        May 31, 2022                        May 31, 2021
                                                 Increase
                                    % of net       ?from                            % of net
                         Amount      ?sales     ?prior year   Change     Amount      ?sales
Central America        $ 1,751,248     59.3 %  $     214,020   13.9 %  $ 1,537,228     59.3 %
Caribbean                  848,206     28.7           98,149   13.1        750,057     28.9
Colombia                   355,496     12.0           48,530   15.8        306,966     11.8
Net merchandise sales  $ 2,954,950    100.0 %  $     360,699   13.9 %  $ 2,594,251    100.0 %

Comparison of the three and nine month periods ended May 31, 2022 and 2021

Overall, total net merchandise sales grew 16.5% for the third quarter and 13.9%
for the nine-month period ended May 31, 2022. The third quarter increase
resulted from a 10.8% increase in transactions and a 5.2% increase in average
ticket. For the nine-month period, the increase resulted from an 11.2% increase
in transactions and a 2.4% increase in average ticket. Transactions represent
the total number of visits our Members make to our warehouse clubs and Click &
Go™ curbside pickup and delivery service transactions. Average ticket represents
the amount our Members spend on each visit or Click & Go™ order. We had 50 clubs
in operation as of May 31, 2022 compared to 47 clubs as of May 31, 2021.

Net merchandise sales in our Central America segment increased 12.7% and 13.9%
for the third quarter and nine-months ended May 31, 2022, respectively. These
increases had a 770 basis point (7.7%) and 820 basis point (8.2%) positive
impact on total net merchandise sales growth. All markets within this segment
had positive net merchandise sales growth for the three and nine-month periods
ended May 31, 2022. We added one new club to the segment when compared to the
comparable prior-year periods. We opened our fifth warehouse club in Guatemala
in October 2021.

Net merchandise sales in our Caribbean segment increased 21.4% and 13.1%,
respectively, for the third quarter and the nine-months ended May 31, 2022. The
increase for the quarter had a 600 basis point (6.0%) positive impact on net
merchandise sales growth and the increase for the nine-months had a 380 basis
point (3.8%) positive impact on net merchandise sales growth. All of our markets
in this segment had positive net merchandise sales growth. Sales for Trinidad
were particularly strong for the third quarter and the nine-months ended May 31,
2022 because in the comparable fiscal second and third quarters of 2021, sales
were impacted by COVID-19 closures, government prohibitions on sales of most
non-foods and non-essential items, and our decision to reduce imported
merchandise due to the U.S. dollar liquidity challenges, which improved in the
second and third quarters of fiscal 2022. Refer to "Management's Discussion &
Analysis - Factors Affecting Our Business" for more information regarding the
impact on us of the illiquidity of the Trinidad dollar. We opened our second
warehouse club in Jamaica in April 2022.



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Net merchandise sales in our Colombia segment increased 25.0% and 15.8% for the
third quarter and the nine-months ended May 31, 2022, respectively. This
increase had a 280 basis point (2.8%) and 190 basis point (1.9%) positive impact
on total net merchandise sales growth. The primary driver of the increased
revenue for the quarter was the addition of one club to the segment when
compared to the comparable prior year period. We opened our ninth warehouse club
in Colombia in November 2021.

The following table indicates the impact that currency exchange rates had on our
net merchandise sales in dollars and the percentage change from the three and
nine-month period ended May 31, 2022. The term "currency exchange rates" refers
to the currency exchange rates we use to convert net merchandise and comparable
net merchandise sales for all countries where the functional currency is not the
U.S. dollar into U.S. dollars. We calculate the effect of changes in currency
exchange rates as the difference between current period activities translated
using the current period's currency exchange rates and the comparable prior year
period's currency exchange rates. We believe the disclosure of the effects of
currency exchange rate fluctuations on our results permits investors to
understand better the Company's underlying performance.

                                Currency exchange rate fluctuations for the
                                            Three months ended
                                               May 31, 2022
                                Amount                                    % change
Central America        $               (14,377)                              (2.8) %
Caribbean                                 2,110                                0.9
Colombia                                (6,814)                              (7.0)
Net merchandise sales  $               (19,081)                              (2.3) %


                                Currency exchange rate fluctuations for the
                                             Nine Months Ended
                                               May 31, 2022
                                Amount                                    % change
Central America        $               (30,528)                              (2.0) %
Caribbean                                 2,038                                0.3
Colombia                               (25,341)                              (8.3)
Net merchandise sales  $               (53,831)                              (2.1) %


Overall, the effects of currency fluctuations within our markets had
approximately $19.1 million and $53.8 million, or 230 basis point (2.3%) and 210
basis points (2.1%), negative impact on net merchandise sales for the quarter
and nine-months ended May 31, 2022, respectively.

Currency fluctuations had a $14.4 million and $30.5 million, or 280 basis point
(2.8%) and 200 basis point (2.0%), negative impact on net merchandise sales in
our Central America segment for the quarter and nine-months ended May 31, 2022.
These currency fluctuations contributed approximately 170 basis points (1.7%)
and 120 basis points (1.2%) of the total negative impact on net merchandise
sales for the current period. The Costa Rica Colón depreciated significantly
against the dollar as compared to the same three-month and nine-month period a
year ago, and was a significant factor in the contribution to the unfavorable
currency fluctuations in this segment.

Currency fluctuations had a $2.1 million and $2.0 million, or 90 basis point
(0.9%) and 30 basis point (0.3%), positive impact on net merchandise sales in
our Caribbean segment for the quarter and nine-months ended May 31, 2022. These
currency fluctuations contributed approximately 20 basis points (0.2%) and 10
basis points (0.1%) positive impact on total net merchandise sales,
respectively. This positive impact was primarily driven by the appreciation of
the Dominican Republic dollar as compared to the same three-month and nine-month
period a year ago.

Currency fluctuations had a $6.8 million and $25.3 million, or 700 basis point
(7.0%) and 830 basis point (8.3%), negative impact on net merchandise sales in
our Colombia segment for the quarter and nine-months ended May 31, 2022. These
currency fluctuations contributed approximately 80 basis points (0.8%) and 100
basis points (1.0%) of the total negative impact on total net merchandise sales
for the quarter and nine-months ended May 31, 2022.



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Comparable Merchandise Sales

We report comparable net merchandise sales on a "same week" basis with 13 weeks
in each quarter beginning on a Monday and ending on a Sunday. The periods are
established at the beginning of the fiscal year to provide as close of a match
as possible to the calendar month and quarter that is used for financial
reporting purposes. This approach equalizes the number of weekend days and
weekdays in each period for improved sales comparison, as we experience higher
merchandise club sales on the weekends. Each of the warehouse clubs used in the
calculations was open for at least 13 ½ calendar months before its results for
the current period were compared with its results for the prior period. As a
result, sales related to two of our warehouse clubs opened during calendar year
2021 and one opened in April 2022 will not be used in the calculation of
comparable sales until they have been open for at least 13 ½ months. Therefore,
comparable net merchandise sales includes 47 warehouse clubs for the thirteen
and thirty-nine week periods ended May 29, 2022.

The following tables show comparable net merchandise sales in the reportable segments in which we operate and the percentage changes in net merchandise sales by segment for the thirteen and thirty-nine week periods ended May 29, 2022 and May 30, 2021 compared to the previous year.

                                                   Thirteen Weeks Ended
                                          May 29, 2022               May 30, 2021
                                           % Increase           % Increase/(decrease)
                                         in comparable              in comparable
                                     net merchandise sales      net merchandise sales
Central America                                     9.7 %                     16.0 %
Caribbean                                          17.4                      (2.5)
Colombia                                           18.1                        3.6
Consolidated comparable net
merchandise sales                                  12.8 %                      8.8 %


                                                   Thirty-Nine Weeks Ended
                                          May 29, 2022                 May 30, 2021
                                           % Increase                   % Increase
                                          in comparable               in comparable
                                      net merchandise sales       net merchandise sales
Central America                                    11.4 %                       5.7 %
Caribbean                                          11.7                         2.6
Colombia                                            5.5                         2.2
Consolidated comparable net
merchandise sales                                  10.8 %                       4.3 %

Comparison of thirteen and thirty-nine week periods ended May 29, 2022 and May 30, 2021

Comparable net merchandise sales for those warehouse clubs that were open for at
least 13 ½ months for some or all of the thirteen-week period ended May 29, 2022
increased 12.8%. Comparable net merchandise sales for those warehouse clubs that
were open for at least 13 ½ months for some or all of the thirty-nine week
period ended May 29, 2022 increased 10.8%.

Comparable net merchandise sales in our Central America segment increased 9.7%
and 11.4% for the thirteen-week and thirty-nine week periods ended May 29, 2022,
respectively. All of our markets in Central America had positive comparable net
merchandise sales growth for the thirteen-week and thirty-nine week periods
ended May 29, 2022, except that Guatemala had negative comparable net
merchandise sales growth during the quarter because of transfers of sales from
warehouse clubs included in the comparable net merchandise sales calculation to
a new club not included in the calculation. The positive comparable net
merchandise sales growth for our Central America segment contributed
approximately 590 basis points (5.9%) and 680 basis points (6.8%) of positive
impact in total comparable merchandise sales for the thirteen-week and
thirty-nine week periods ended May 29, 2022, respectively.



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Comparable net merchandise sales in our Caribbean segment increased 17.4% and
11.7% for the thirteen-week and thirty-nine week periods ended May 29, 2022.
These increases contributed approximately 490 basis points (4.9%) and 340 basis
points (3.4%) of positive impact on total comparable merchandise sales for the
thirteen-week and thirty-nine week periods ended May 29, 2022, respectively.

Our Trinidad market continued its strong performance in the thirteen-week and
thirty-nine week periods ended May 29, 2022, with 21.7% and 8.1% comparable net
merchandise sales growth, respectively. Trinidad sales significantly improved
versus the prior period due to COVID-19 closures and prohibited sales of most
non-foods and non-essential items in the comparable prior year period, along
with increased sales in the current period resulting from our restoring
inventory levels of merchandise sourced in U.S. dollars in connection with an
improvement in the liquidity of the Trinidad dollar during the period. Refer to
"Management's Discussion & Analysis - Factors Affecting Our Business" for more
discussion on the Trinidad dollar illiquidity situation. Our Dominican Republic
and Aruba markets also showed strong performance, with both having double digit
comparable net merchandise sales growth for the thirteen and thirty-nine week
periods.

Comparable net merchandise sales in our Colombia segment increased 18.1% and
5.5% for the thirteen-week and thirty-nine week periods ended May 29, 2022,
respectively. These increases contributed approximately 200 basis points (2.0%)
and 60 basis points (0.6%) of positive impact in total comparable merchandise
sales for the thirteen-week and thirty-nine week periods ended May 29, 2022,
respectively. The increase in Colombia during the thirteen-week and thirty-nine
week period was primarily due to the year-over-year improvements in sales growth
due to the comparably improved COVID-19 situation.

The following tables illustrate the impact that changes in foreign currency
exchange rates had on our comparable merchandise sales in dollars and the
percentage change for the thirteen-week and thirty-nine week periods ended May
29, 2022.

                                         Currency Exchange Rate Fluctuations for the
                                                    Thirteen Weeks Ended
                                                        May 29, 2022
                                                 Amount               % change
Central America                         $               (14,434)             (2.8) %
Caribbean                                                  2,308               1.0
Colombia                                                 (6,513)             (6.8)
Consolidated comparable net
merchandise sales                       $               (18,639)             (2.2) %


                                         Currency Exchange Rate Fluctuations for the
                                                   Thirty-Nine Weeks Ended
                                                        May 29, 2022
                                                 Amount               % change
Central America                         $               (31,117)             (2.0) %
Caribbean                                                  2,386               0.3
Colombia                                                (22,590)             (7.6)
Consolidated comparable net
merchandise sales                       $               (51,321)             (2.0) %


Overall, the mix of currency fluctuations within our markets had an
approximately $18.6 million and $51.3 million, or 220 basis point (2.2%) and 200
basis point (2.0%), negative impact on comparable net merchandise sales for the
thirteen and thirty-nine week periods ended May 29, 2022.

Currency fluctuations within our Central America segment accounted for
approximately 170 basis points (1.7%) and 120 basis points (1.2%) of negative
impact on total comparable merchandise sales for the thirteen and thirty-nine
week period, respectively. Our Costa Rica market was the main contributor as the
market experienced currency devaluation when compared to the same periods last
year.

Currency fluctuations within our Caribbean segment accounted for approximately
30 basis points (0.3%) and 10 basis points (0.1%) of positive impact on total
comparable merchandise sales the thirteen and thirty-nine week period,
respectively. Our Dominican Republic market experienced currency appreciation,
which was partially offset for the thirteen-week period and the thirty-nine week
period by our Jamaica market, which experienced currency devaluation when
compared to the same periods last year.



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Currency fluctuations within our Colombia segment accounted for approximately 80
basis points (0.8%) and 90 basis points (0.9%) of negative impact on total
comparable merchandise sales for the thirteen and thirty-nine week period,
respectively. This reflects the devaluation of the Colombian peso when compared
to the same periods a year ago.



Membership revenue

Membership income is recognized ratably over the one-year life of the
membership.

                                                      Three Months Ended
                                                     May 31,                              May 31,
                                                       2022                                 2021
                                                                        Membership
                                           Increase                     income % to
                                             ?from                    net merchandise
                              Amount      ?prior year    % Change       club sales         Amount
Membership income -
Central America             $    9,070   $         582       6.9 %            1.5 %      $    8,488
Membership income -
Caribbean                        4,130             203       5.2              1.4             3,927
Membership income -
Colombia                         2,240             326      17.0              1.9             1,914
Membership income - Total   $   15,440   $       1,111       7.8 %            1.5 %      $   14,329


                                                        Nine Months Ended
                                                      May 31,                               May 31,
                                                        2022                                 2021
                                                                         Membership
                                             Increase                   ?income % to
                                               from                   ?net merchandise
                               Amount       prior year    % Change       ?club sales        Amount
Membership income -
Central America              $    26,824   $      2,382       9.7 %            1.5 %      $    24,442
Membership income -
Caribbean                         12,097            644       5.6              1.4             11,453
Membership income -
Colombia                           6,381            849      15.3              1.8              5,532
Membership income - Total    $    45,302   $      3,875       9.4 %            1.5 %      $    41,427

Number of accounts -
Central America                  942,096         56,574       6.4 %                           885,522
Number of accounts -
Caribbean                        450,094         20,673       4.8                             429,421
Number of accounts -
Colombia                         355,053         31,163       9.6                             323,890
Number of accounts - Total     1,747,243        108,410       6.6 %                         1,638,833

Comparison of the three and nine month periods ended May 31, 2022

The number of member accounts as of May 31, 2022 was 6.6% higher than the number
of accounts as of May 31, 2021. Membership income increased 7.8% and 9.4% over
the three and nine-month periods ended May 31, 2022, respectively, compared to
the same prior-year periods.

Membership income increased across all of our operating segments in the three
and nine-month periods ended May 31, 2022. The consolidated increase in
membership income is due to an increase in the membership base since the start
of fiscal year 2022. Since August 31, 2021, all segments have increased their
membership base. Central America had the largest increase in membership base in
the first three quarters of fiscal year 2022, with 6.4% growth, due primarily to
the opening of our fifth club in Guatemala in October 2021, followed by Colombia
with an 9.6% increase, due primarily to the opening of our ninth club in
November 2021, and the Caribbean with a 4.8% increase, due primarily to the
opening of our second club in Jamaica in April 2022.



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We now offer the Platinum Membership program in all locations where PriceSmart
operates. The annual fee for a Platinum Membership in most markets is
approximately $75. The Platinum Membership program provides Members with a 2%
rebate on most items, up to an annual maximum of $500. We record the 2% rebate
as a reduction on net merchandise sales at the time of the sales transaction.
Platinum Membership accounts are 7.1% of our total membership base as of May 31,
2022, an increase from 6.0% as of May 31, 2021. Platinum Members tend to have
higher renewal rates than our Diamond Members.

Our trailing twelve-month renewal rate was 88.9% and 87.6% for the periods ended
May 31, 2022 and May 31, 2021, respectively. Approximately 14% and 15% of our
membership sign-ups were completed using our online platform for the nine-month
period ended May 31, 2022 and May 31, 2021, respectively. Our online platform
facilitates capturing data and provides the opportunity for automatic renewal of
memberships, as well as improving our digital connection with our Members.

Other income

Other revenue primarily consists of non-merchandise revenue from freight and
handling fees generated from the marketplace and casillero operations we sold in
October 2021, interest-generating portfolio from our co-branded credit cards,
and rental income from operating leases where the Company is the lessor.

                                               Three Months Ended
                                          May 31, 2022                    May 31, 2021
                                   Increase (decrease) from
                         Amount          ?prior year          % Change       Amount
Non-merchandise revenue  $     -  $                 (10,806)  (100.0) %  $       10,806
Miscellaneous income       2,359                         713     43.3             1,646
Rental income                604                       (188)   (23.7)               792
Other revenue            $ 2,963  $                 (10,281)   (77.6) %  $       13,244


                                                Nine Months Ended
                                          May 31, 2022                     May 31, 2021
                                    Increase (decrease) from
                          Amount          ?prior year          % Change       Amount
Non-merchandise revenue  $  3,307  $                 (33,172)   (90.9) %  $       36,479
Miscellaneous income        6,675                       1,631     32.3             5,044
Rental income               1,885                       (379)   (16.7)             2,264
Other revenue            $ 11,867  $                 (31,920)   (72.9) %  $       43,787

Comparison of the three and nine month periods ended May 31, 2022 and May 31, 2021

The primary driver of the decrease in other revenue for the quarter and
nine-months ended May 31, 2022 was the sale of our Aeropost subsidiary and its
marketplace and casillero operations on October 1, 2021. For additional
information on the results of the disposition, refer to "Item 1. Financial
Statements: Notes to Consolidated Financial Statements, Note 2 - Summary of
Significant Accounting Policies." This decrease was partially offset by an
increase from our interest-generating portfolio from our co-branded credit cards
for the quarter and nine-months ended May 31, 2022.



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