Costco Q3 represents growth of 6.6%, e-commerce grows 21%; intends to open nine new clubs in the USA

Costco currently operates 878 warehouses, including 605 in the United States and Puerto Rico.

Costco Wholesale Corp. reported another strong quarter, with earnings, revenue and same-store sales exceeding Wall Street expectations thanks to increased traffic and discretionary purchases.

“As inflation stabilizes, our members are returning to purchasing more discretionary items,” Chief Financial Officer Gary Millerchip told analysts on the company’s earnings call. “Growth in this category was driven by toys, tires, lawn and garden and health and beauty products“

It was Millerchip’s first earnings call as Costco’s chief financial officer. He was appointed to this position in March, replacing the company’s long-time financial director, Richard Galanti, who retired after almost 40 years of serving in this position. Millerchip joined Costco from The Kroger Co., where he worked head of finance.

A warehouse club member retailer has let the street down by once again failing to raise his membership fee. Talk to me, MillerchipWhen asked about the raise, he replied that it was still a matter of “when”, not “if”.

Costco’s net income rose to $1.68 billion, or earnings per share of $3.78, in the quarter ended May 12, up from $1.30 billion, or $2.93 per share, in the year-ago period. Analysts expected earnings per share of $3.70.

Total revenue rose to $58.515 billion from $53.648 billion, beating estimates of $58.02 billion. Net sales increased 9.1% to $57.39 billion. Membership dues increased 7.6% to $1.12 billion.

Total comparable sales increased 6.6%, higher than expected. U.S. same-store sales increased 6.2%, with traffic increasing 5.5% and ticket sales increasing 0.7%.

E-commerce sales increased 20.7%, led by gold and silver bullion, gift cards and home appliances.

Costco ended the quarter with 74.5 million paid members, up 7.8% from a year earlier.

Costco currently operates 878 warehouses, including 605 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven in China, four in Spain, two in France and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the US, Canada, UK, Mexico, Korea, Taiwan, Japan and Australia.

For the remainder of fiscal 2024, Costco plans to open another 12 new locations, nine in the U.S., two in Japan and one in Korea.