Costco August sales up 9.9% amid higher gas prices, digital growth
Costco Wholesale Corp. maintained momentum in August as its average worldwide transaction increased, boosted by higher gas prices.
The membership warehouse giant reported that its net sales increased 9.9% to $23.70 billion in August. For the 16-week fourth quarter, net sales increased 11.3% to $93.9 billion.
Total company comparable sales rose 8.4% in August. Comp sales increased 9% in the U.S., and 4% in Canada. Other international comps rose 9.5%. Digitally-enabled comp sales surged 17.5%.
Total company comparable sales excluding the impacts from changes in gasoline prices and foreign exchange rose 5.4%, with a 5.6% increase in the U.S. and a 2.8% increase in Canada. Other international comps rose 6.8%. By region, comparative sales were highest in the Southeast, San Diego and the Midwest.
The average worldwide transaction was up 5.7%. Excluding fuel and foreign exchange, the average transaction rose 2.8% Costco noted that the average worldwide selling price of gas per gallon was up 25.8% in August.
On the merchandise category front, excluding impact of foreign currently, non-food comps were positive mid-single digits, with home furnishings, sporting goods and jewelry among the strongest performing departments. Food and sundries were positive low-single digits. Ancillary business sales were up in the high twenties. The top performers were gas, pharmacy and hearing aids.
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The company noted that Labor Day in the U.S. and Canada occurs one week later this year. The shift negatively impacted August total and comparable sales by a little less than 75 bps.
Costco currently operates 939 warehouses, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia and China.
