Costco Wholesale Corporation Reports January Sales Results
Costco Wholesale Corporation reported net sales of $22.08 billion for the retail month of January, an increase of 4.5 percent from last year. For the 22 weeks ended February 4, 2024, the Company reported net sales of $104.94 billion, an increase of 6.0 percent from the same period last year. Comparable sales showed positive growth in the U.S., Canada, and Other International segments. E-commerce sales also demonstrated significant growth. However, the retail month of January had one less shopping day, impacting total and comparable sales negatively by approximately three to three and one-half percent.
Costco's reported increase in net sales of 4.5 percent for the retail month of January and a 6.0 percent increase for the 22-week period, reflect a steady growth trajectory for the company. It's important to note that this growth is occurring despite a challenging retail environment, characterized by increased competition and changing consumer behaviors. The e-commerce segment, showing a 21.0 percent and 12.1 percent increase in comparable sales for the 5-week and 22-week periods respectively, underscores the ongoing shift towards online shopping and the importance of a strong digital presence for traditional retailers.
Comparing the growth in different regions, Canada and other international markets are outperforming the U.S. This could be indicative of Costco's successful international expansion strategy and could signal further investment in these markets. However, it's also crucial to monitor how changes in gasoline prices and foreign exchange rates are excluded from the comparable sales figures, as these factors can significantly impact the cost structure and profitability.
The reported figures suggest a robust financial health for Costco, with net sales surpassing the $100 billion mark over the 22-week period. This performance is likely to be well-received by investors, as it demonstrates the company's ability to grow revenue consistently. The mention of the negative impact of one less shopping day due to the timing of New Year's Day provides a nuanced understanding of the sales dynamics and indicates that the underlying growth could be even stronger than reported.
From an investment perspective, the steady increase in sales, particularly in the context of a retail industry facing significant headwinds, may be seen as a sign of Costco's resilience and effective business model. The company's operational efficiency and bulk-selling approach could be contributing factors to its ability to maintain growth and compete effectively against both brick-and-mortar and online retailers.
The notable growth in e-commerce sales for Costco, with a 20.9 percent increase in the 5-week period and an 11.8 percent increase in the 22-week period, highlights the company's successful adaptation to the digital marketplace. The double-digit growth rates in this segment are particularly impressive given the already significant base from which they are growing. This performance may be attributed to Costco's strategic investments in its online platform, improved logistics and expanded product offerings.
As e-commerce continues to become a critical component of retail strategy, Costco's ability to integrate its in-store experience with its online presence will be key to sustaining this growth. The company's capacity to leverage its vast warehouse network to fulfill online orders efficiently is a competitive advantage that can drive both top-line growth and margin improvements.
02/07/2024 - 04:15 PM
ISSAQUAH, Wash., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $22.08 billion for the retail month of January, the five weeks ended February 4, 2024 an increase of 4.5 percent from $21.13 billion last year.
For the 22 weeks ended February 4, 2024, the Company reported net sales of $104.94 billion , an increase of 6.0 percent from $99.00 billion for the 22 weeks of fiscal year 2023 ended January 29, 2023.
Comparable sales for the periods ended February 4, 2024 were as follows:
5 Weeks 22 Weeks U.S. 1.6% 3.2% Canada 6.2% 7.9% Other International 5.1% 9.6% Total Company 2.7% 4.7% 21.0% 12.1%
Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:
5 Weeks 22 Weeks U.S. 2.2% 3.7% Canada 6.6% 8.7% Other International 6.3% 7.2% Total Company 3.4% 4.8% 20.9% 11.8%
This year’s retail month of January had one less shopping day due to the timing of New Year’s Day. This negatively impacted total and comparable sales by approximately three to three and one-half percent.
Additional discussion of these results is available in a recorded message. It can be accessed by dialing 1-888-848-7292 or by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, February 14, 2024.
Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs), energy and certain commodities, geopolitical conditions (including tariffs and the Ukraine conflict), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with GAAP.
CONTACTS: Costco Wholesale Corporation Richard Galanti, 425/313-8203 David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254
COST-Sales
What were Costco's net sales for the retail month of January?
Costco's net sales for the retail month of January were $22.08 billion, representing a 4.5 percent increase from the previous year.
What was the impact of the timing of New Year's Day on Costco's sales?
The timing of New Year's Day resulted in one less shopping day, negatively impacting total and comparable sales by approximately three to three and one-half percent.
How many warehouses does Costco currently operate?
Costco currently operates 874 warehouses, including 602 in the United States and Puerto Rico, 108 in Canada, and several others in different countries.
In which countries does Costco operate e-commerce sites?
Costco operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia.
