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.

February Results

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.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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