On Thursday, Costco Wholesale Corporation
Fiscal 2024 First Quarter Highlights
Costco reported revenue rose 6% YoY to $57.8 billion, topping Bloomberg's estimate of $57.71 billion. Adjusted earnings per share amounted to $3.58, topping Wall Street's estimates of $3.41 as net income significantly rose, rising from last year's comparable quarter when Costco earned $1.36 billion to $1.589 billion.
Although total same-store sales rose 3.8%, they were below the expected 4.3% as they were dragged down by the U.S. with the region growing 2%, compared to the expected 2.77%. E-commerce sales grew 6.3%, topping Bloomberg's estimate of 6.1%.
During the post-earnings call, CFO Richard Galanti also spoke of non-food categories like televisions and appliances that improved during the quarter, while Black Friday and Cyber Monday were also better-than-expected. Moreover, Galanti revealed that management has been pleasantly surprised by foot traffic.
Costco also gathered a devoted membership base that benefits from incentives offered like a yearly 2% reward on qualified purchases at its warehouses. Pinched budgets due to persistent inflation and higher borrowing costs fueled sales for its consumable categories like fresh food and sundries, along with its private-label brand Kirkland Signature.
Despite Concerns, The Holiday Season Is Off To A Good Start
Costco joined Foot Locker in spreading the holiday cheer. Along with Walmart Inc
But during these dark macroeconomic times, Costco continues to even outshine its retail rivals. Although Costco's CEO Craig Jelinek will be stepping down, Costco is staying the course, with its current COO Ron Vachris getting behind the CEO wheel on January 1st, 2024. With its latest results, Costco affirmed its renown leader status in wholesale, kicking off its fiscal year with robust financial health by well managing its expenses and optimizing profitability.
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.