Categories AlphaGraphs, Earnings
Costco (COST) delivers better-than-expected Q1 earnings on strong comp sales growth; sales miss
Warehouse club operator Costco Wholesale Corp. (NASDAQ: COST) Thursday said its first-quarter earnings increased from last year, continuing the recent trend. Earnings topped the Street view, while revenues missed. Though the company’s stock gained modestly during the extended trading session on Thursday, immediately after the announcement, it slipped into the negative territory later.
There was a 10% increase in November-quarter earnings to $1.90 per share, which also came in above Wall Street’s forecast. Net income rose to $844 million from $767 million in the first quarter of 2019.
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.
Most Popular
PG Earnings: Procter & Gamble Q3 profit climbs, beats estimates
Consumer goods behemoth The Procter & Gamble Company (NYSE: PG) announced financial results for the third quarter of 2024, reporting a double-digit growth in net profit. Sales rose modestly. Core
AXP Earnings: All you need to know about American Express’ Q1 2024 earnings results
American Express Company (NYSE: AXP) reported its first quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, increased 11% year-over-year to $15.8 billion, driven mainly by higher
Netflix (NFLX) Q1 2024 profit tops expectations; adds 9.3Mln subscribers
Streaming giant Netflix, Inc. (NASDAQ: NFLX) Thursday reported a sharp increase in net profit for the first quarter of 2024. Revenues were up 15% year-over-year. Both numbers exceeded Wall Street's
Comments
Comments are closed.