Costco Wholesale Corporation Reports July Sales Results

Rhea-AI Summary

Costco Wholesale (Nasdaq: COST) reported net sales of $19.26 billion for July 2024, a 7.1% increase from last year. The company's 48-week net sales reached $229.81 billion, also up 7.1% year-over-year. Notably, e-commerce sales surged by 20.2% for the month and 15.6% for the 48-week period. Comparable sales, excluding gasoline prices and foreign exchange impacts, showed strong growth across all regions, with Canada leading at 10.2% for the month. Costco currently operates 884 warehouses globally, with a significant presence in the United States, Canada, and various international markets.

Positive

• Net sales increased by 7.1% to $19.26 billion for July 2024
• 48-week net sales grew 7.1% to $229.81 billion
• E-commerce sales surged by 20.2% for the month and 15.6% for the 48-week period
• Comparable sales, excluding gas and forex, showed strong growth across all regions
• Canada led comparable sales growth at 10.2% for the month

Negative

• None.

Insights

Financial Analyst

Costco's July sales report shows robust growth, with net sales increasing by 7.1% to $19.26 billion. This performance is impressive given the current economic climate. The standout metric is e-commerce growth at 20.2%, indicating Costco's successful digital transformation efforts.

The company's international expansion is paying off, with strong comparable sales growth in Canada (6.3%) and Other International (3.7%). Excluding gasoline and forex impacts, these figures are even more impressive at 10.2% and 8.9% respectively, showcasing Costco's resilience in diverse markets.

With 884 warehouses globally, Costco's continued expansion strategy is driving growth. The consistent performance across different timeframes (4 weeks vs. 48 weeks) suggests sustainable long-term growth, which should be viewed positively by investors.

Market Research Analyst

Costco's July sales data reveals interesting consumer trends. The 20.2% growth in e-commerce suggests a significant shift towards online shopping, even as physical stores remain relevant. This hybrid model is proving effective for Costco, allowing them to capture both traditional and digital-first consumers.

The strong performance in international markets, particularly Canada and Other International, indicates Costco's successful adaptation to diverse consumer preferences globally. The company's ability to maintain growth across different regions showcases its resilient business model and effective localization strategies.

The consistent growth in both short-term (4 weeks) and long-term (48 weeks) periods suggests that Costco is not just riding a temporary wave but is building sustainable momentum. This bodes well for the company's future prospects in the competitive retail landscape.

Retail Industry Expert

Costco's July performance is a testament to its resilient business model. The 7.1% overall sales growth outpaces many competitors in the retail sector, highlighting Costco's strong value proposition to consumers, especially in inflationary times.

The impressive e-commerce growth of 20.2% shows Costco's successful adaptation to changing consumer behaviors. However, it's important to note that this growth is complementing, not cannibalizing, their warehouse sales, demonstrating the effectiveness of their omnichannel strategy.

Costco's continued expansion, with 884 warehouses globally, shows confidence in their brick-and-mortar model. The strong performance across diverse markets indicates their format translates well internationally. This global footprint provides a hedge against regional economic fluctuations, contributing to Costco's overall stability and growth potential.

ISSAQUAH, Wash., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $19.26 billion for the retail month of July, the four weeks ended August 4, 2024, an increase of 7.1 percent from $17.99 billion last year.

Net sales for the first 48 weeks were $229.81 billion, an increase of 7.1 percent from $214.53 billion last year.

Comparable sales were as follows:

	4 Weeks		48 Weeks
U.S.	5.3%		4.5%
Canada	6.3%		7.2%
Other International	3.7%		8.1%
Total Company	5.2%		5.3%
E-commerce	20.2%		15.6%

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

	4 Weeks		48 Weeks
U.S.	6.3%		4.9%
Canada	10.2%		8.3%
Other International	8.9%		8.2%
Total Company	7.2%		5.8%
E-commerce	21.1%		15.6%

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 Wednesday, August 14, 2024.

Costco currently operates 884 warehouses, including 611 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 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 July 2024?

Costco's net sales for July 2024 were $19.26 billion, representing a 7.1% increase from the previous year.

How much did Costco's (COST) e-commerce sales grow in July 2024?

Costco's e-commerce sales grew by 20.2% for the month of July 2024 compared to the same period last year.

What was Costco's (COST) total net sales for the first 48 weeks of 2024?

Costco's total net sales for the first 48 weeks of 2024 were $229.81 billion, a 7.1% increase from $214.53 billion in the previous year.

Which region showed the highest comparable sales growth for Costco (COST) in July 2024?

Canada showed the highest comparable sales growth for Costco in July 2024, with a 10.2% increase excluding the impacts from changes in gasoline prices and foreign exchange.