Costco Q1 income beats Street, e-commerce sales surge 13%; to open 26 new clubs
Costco Wholesale Club reported a strong first quarter as its traffic and average ticket rose, both at home and globally.
Net income totaled $1.8 billion, $4.04 per diluted share, for the quarter ended Nov. 25, compared to $1.6 billion, $3.58 per diluted share, last year, topping analysts’ estimates of $3.79 per share.
Total revenue at Costco rose to $62.15 billion from $57.79 billion last year. Net sales rose 7.5%, to $60.99 billion from $56.72 billion last year. Membership fees rose to $1.166 billion from $1.082 billion.
Gold and jewelry, gift cards, home furnishings, sporting goods, health and beauty aids, luggage kiosk and hardware were all up double digits compared to the prior quarter.
Total company comparable sales rose 5.2%. Comp sales rose 5.2% in the U.S. and 5.8% in Canada. Other international comp sales rose 4.7%. Adjusted for the impacts from changes in gasoline prices and foreign exchange, total company comp sales rose 13.2% and were up 7.2% in the U.S. E-commerce sales jumped 13%.
Costco’s traffic rose 4.9% in the U.S. and was up 5.1% globally. The company’s average ticket inched up 0.1% worldwide and 0.3% in the U.S. Adjusted to exclude the impact of gas prices and foreign currency, the average ticket would have risen 2.3% in the U.S. and 2% worldwide.
Costco opened seven new clubs in the quarter and plans to open 29 new locations during the fiscal year, including three relocations, executives said on the company’s earnings call.
[READ MORE: Costco sales increase 7% in October amid hurricane, port strike disruption]
Costco currently operates 897 warehouses, including 617 in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 36 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
