A nice May surprise for Costco
Costco reported net sales of $9.86 billion for the month of May, the four weeks ended May 28, an increase of 7 percent from $9.23 billion during the similar period last year. For the thirty-nine weeks ended May 28, the company reported net sales of $92.11 billion, an increase of 6 percent from $87.18 billion during the similar period last year.
Comps rose 5.2% in the US (SPY), while they rose 4.9% at other international locations. However, Canada reported a 2.2% fall in comps, which reflected negative currency fluctuations.
Costco’s May comps reflect a stark improvement compared to the same period last year when the company’s comps remained flat.
Costco also posted strong sales and profit growth and expanded e-commerce operations during its third quarter ended May 7, demonstrating a type of consistency that is hard to achieve in an always volatile industry. Same store sales at Costco’s U.S. locations increased 5 percent (excluding fuel and foreign exchange effects) during the quarter and total sales for the period increased 8 percent to $28.2 billion. Profits increased 28 percent to $700 million, or $1.59 a share, compared to $545 million, or $1.24 a share.
Costco currently operates 732 warehouses, including 510 in the United States and Puerto Rico, 95 in Canada, 37 in Mexico, 28 in the United Kingdom, 25 in Japan, 13 in Korea, 13 in Taiwan, eight in Australia, two in Spain and one in Iceland. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.