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
Key takeaways from Kroger’s (KR) Q1 2025 earnings report
The Kroger Co. (NYSE: KR) recently reported mixed results for the first quarter of fiscal 2025, with earnings beating estimates and sales missing. The grocery giant’s stock rose following the
What to expect when McCormick & Company (MKC) reports Q2 2025 earnings results
Shares of McCormick & Company, Incorporated (NYSE: MKC) gained over 1% on Monday. The stock has dropped 7% over the past three months. The condiments maker is slated to report its second
Earnings Preview: Paychex (PAYX) looks set to end FY25 on a strong note
Paychex Inc. (NASDAQ: PAYX) has benefited from the stable labor market and resilient customers, despite inflationary pressures and the challenging economic environment. The company is leveraging its strong fundamentals and
Comments
Comments are closed.