Costco Wholesale Corporation Reports August Sales Results

Rhea-AI Summary

Costco Wholesale (Nasdaq: COST) reported net sales of $19.83 billion for August 2024, a 7.1% increase from last year. The company's fourth-quarter net sales reached $78.2 billion, up 1.0% year-over-year, while fiscal year 2024 net sales totaled $249.6 billion, a 5.0% increase from 2023.

Comparable sales for August showed strong growth, with total company sales up 5.0% and e-commerce sales surging 22.9%. Excluding impacts from gasoline prices and foreign exchange, total company comparable sales rose 7.1% for the month. Costco now operates 890 warehouses globally, with a significant presence in the U.S., Canada, and international markets.

Positive

• Net sales increased by 7.1% to $19.83 billion for August 2024
• Fiscal year 2024 net sales grew 5.0% to $249.6 billion
• E-commerce sales surged 22.9% in August
• Total company comparable sales increased 5.0% for August
• Excluding gas and forex impacts, total company comparable sales rose 7.1% in August

Negative

• Fourth-quarter net sales growth slowed to 1.0% year-over-year

Insights

Financial Analyst

Costco's August sales report shows robust growth, with net sales up 7.1% to $19.83 billion for the month. The fiscal year ended strong with annual sales reaching $249.6 billion, a 5.0% increase from the previous year. Notably, e-commerce sales surged 22.9% in August, indicating Costco's successful digital transformation efforts.

The company's consistent growth across all regions, particularly in international markets, demonstrates its strong global expansion strategy. The Other International segment saw a 7.5% increase in comparable sales, highlighting Costco's appeal beyond North America. This geographic diversification helps mitigate risks associated with economic fluctuations in any single market.

Investors should note the company's ability to maintain growth despite challenging economic conditions, suggesting strong consumer loyalty and effective pricing strategies. The continued expansion of warehouses globally also positions Costco for sustained long-term growth.

Market Research Analyst

Costco's performance reflects broader trends in consumer behavior and retail dynamics. The significant 22.9% growth in e-commerce aligns with the ongoing shift towards online shopping, accelerated by the pandemic. This suggests Costco is successfully adapting to changing consumer preferences while maintaining its warehouse model.

The strong performance in international markets, particularly the 10.8% comparable sales growth (excluding gas and forex) in Other International, indicates Costco's business model resonates globally. This success in diverse markets like Japan, UK and Australia demonstrates the company's ability to adapt its offerings to local tastes while maintaining its core value proposition.

The consistent growth across all regions, despite varying economic conditions, suggests Costco's value-oriented approach remains attractive to consumers, potentially positioning the company well in case of economic downturns. The expansion to 890 warehouses globally further cements Costco's market presence and economies of scale.

ISSAQUAH, Wash., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $19.83 billion for the retail month of August, the four weeks ended September 1, 2024, an increase of 7.1 percent from $18.51 billion last year.

For the 16-week fourth quarter, the Company reported net sales of $78.2 billion, an increase of 1.0 percent compared to net sales of $77.4 billion in the 17-week fourth quarter of fiscal year 2023.

For the 52-week fiscal year ended September 1, 2024, the Company reported net sales of $249.6 billion, an increase of 5.0 percent from $237.7 billion reported in the 53-week fiscal year 2023.

Comparable sales were as follows:

		4 Weeks		16 Weeks		52 Weeks
		Retail Month		Fourth Quarter		Fiscal Year
	U.S.	4.7%		5.3%		4.5%
	Canada	4.5%		5.5%		7.0%
	Other International	7.5%		5.7%		8.1%
	Total Company	5.0%		5.4%		5.3%
	E-commerce	22.9%		18.9%		16.1%

Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

		4 Weeks		16 Weeks		52 Weeks
		Retail Month		Fourth Quarter		Fiscal Year
	U.S.	6.7%		6.3%		5.0%
	Canada	5.8%		7.9%		8.1%
	Other International	10.8%		9.3%		8.4%
	Total Company	7.1%		6.9%		5.9%
	E-commerce	23.3%		19.5%		16.2%

Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Thursday, September 12, 2024.

Costco currently operates 890 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 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 U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:	Costco Wholesale Corporation
	David Sherwood, 425/313-8239
	Josh Dahmen, 425/313-8254

COST-Sales

FAQ

What was Costco's (COST) net sales for August 2024?

Costco (COST) reported net sales of $19.83 billion for August 2024, representing a 7.1% increase from the previous year.

How did Costco's (COST) e-commerce sales perform in August 2024?

Costco's (COST) e-commerce sales showed strong growth, increasing by 22.9% in August 2024 compared to the same period last year.

What was Costco's (COST) total net sales for the fiscal year 2024?

Costco (COST) reported total net sales of $249.6 billion for the fiscal year 2024, which represents a 5.0% increase from the previous fiscal year.

How many warehouses does Costco (COST) operate globally as of September 2024?

As of September 2024, Costco (COST) operates 890 warehouses globally, including 614 in the United States and Puerto Rico, and locations across various international markets.