Costco Wholesale Corporation (COST) Second Quarter Comparable Store Sales Rises 2%
Costco Wholesale Corporation (NASDAQ:COST) disclosed that its comparable store sales for the second quarter witnessed a 2% growth. Though the United States segment delivered a 4% uptick in its comps, the international segment dragged down 2% comps due to unfavorable currency impact. However, excluding the effect of gasoline price deflation and currency impact, total comps would have recorded 8% growth in the second quarter.
Significantly, Costco Wholesale Corporation (NASDAQ:COST)’s American region and international divisions delivered 8% each in comparable store sales growth during the period under review.
Second Quarter Results
The company reported that its net income surged 29.2% to $598 million from $463 million in the prior year quarter. Similarly, its earnings jumped 28.6% to $1.35 a share from $1.05 a share in the year-ago quarter. Results included a favorable impact of 13 cents a share in the quarter, partly compensated by an unfavorable tax charge of three cents a share.
Therefore, Costco Wholesale Corporation (NASDAQ:COST)’s adjusted earnings would have been $1.22 a share, which was four cents a share higher than the Wall Street analysts’ estimation of $1.18 a share.
Total revenue grew 4.33% to $27.45 billion from $26.31 billion in the previous year quarter. Revenue fell short of the Street analysts’ predictions of $27.65 billion. While net sales advanced 4.3% to $26.87 billion from $25.76 billion, revenue from memberships increased 5.8% to $582 million from $550 million in the same quarter last year.
The company’s cash and cash equivalents were $5.866 billion at the end of the second quarter, which was up from $5.74 billion in the previous year quarter.
For the month of February, the company’s comparable stores rose 1%. This was due to a 2% uptick in its United States segment while global wings did not provide any support. Excluding the impact of gasoline prices and foreign exchange, total comps would have grown 8%. While the growth in the U.S. comps were 7%, International comps surged 12% in February.
Costco Wholesale Corporation (NASDAQ:COST) delivered 3.54% growth in sales to $8.18 billion from $7.9 billion in the previous year month.
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