Sales up 6%
The positive bottom-line performance reflects a 5.6% growth in net sales to $36.24 billion. That is slightly below the consensus estimate. Total same-store sales were up 4.3%, with all the business segments registering growth. E-commerce sales were up 5.5%.
Pricing Strength
Costco has long been a market leader, thanks to the heavy discounts and extensive merchandise assortment. Competitive pricing and steady membership growth continue to be the primary growth drivers, which also help the company keep expanding its market share.
Warehouse Network
At the end of the quarter, the company operated a total of 785 warehouses, including 546 in the US and Puerto Rico. It also operated 100 stores in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia and two in Spain. There is one unit each in Iceland, France, and China.
Related: Costco Q4 2019 Earnings Conference Call Transcript
Last month, Costco shares climbed to a record high, after gaining 43% since the beginning of the year. The stock, which has maintained a steady uptrend in recent years, closed Thursday’s regular session higher.