Costco’s October beats expectations
Costco Wholesale posted a 10.1% increase in revenue amid increases in sales traffic and a big increase in online sales.
Costco’s net sales rose 10.1% to $10.02 billion for the four weeks ended Oct. 29, from $9.11 billion during the similar period last year.
Total same-store sales increased 7.5%, ahead of the Street forecast, with a 7% increase in U.S., and a 9% rise in Canada. Other International comparable sales rose 8.2%. For the second consecutive month, comparable e-commerce sales rose 31%.
Monthly comparable sales, excluding the impacts from changes in gasoline prices and foreign exchange, were up 5.6%, with a 5.9% rise in U.S. and a 2.8% increase in Canada. Other International comparable sales rose 7.4%.
Commenting on the results, Ray Young, analyst with Gordon Haskett Research Advisors, said Costco continues to deliver, and that its U.S. sales trends remain “incredibly steady and solid.”
He noted that the retailer’s traffic trends also remain healthy, both globally (up 3.9%) and in the U.S. (up 4.1%).