Planet Retail on Costco’s Q2 Results
Costco Wholesale Corp.’s winning streak continues as the chain reported a better-than-expected 39% increase in profits for its fiscal second quarter. Here is Planet Retail’s take on the company’s most recent performance and future prospects:
“Costco continues to outperform its peers in terms of overall sales growth, comparable club gains, and space and SKU productivity,” said Sandy Skrovan, U.S. research director, Planet Retail. “The retailer’s ability to keep members engaged and coming back for more is unparalleled. It has some of the most loyal customers across retailing.”
Based on a mid-year assessment, Planet Retail remains optimistic about the company’s future growth prospects.
Skrovan added: “A re-acceleration of club expansion efforts, both in the US and abroad, and advances in e-commerce on a global perspective will propel the retailer forward. Five years ago, international operations generated less than a quarter of Costco sales. Five years from now, we project a third will come from international.
“By 2018, Costco will have doubled its sales in the space of a decade, a remarkable feat considering it’s the result of entirely organic growth.”