Costco Wholesale Corporation Reports July Sales Results

Rhea-AI Summary

Costco Wholesale Corporation (COST) announced a 14.1% year-over-year increase in net sales for July 2020, reaching $13.04 billion. For the 48 weeks ending August 2, 2020, net sales totaled $149.66 billion, up 8.8% from $137.56 billion the prior year. Comparable sales in the U.S. rose by 13.3%, while e-commerce sales soared by 75.3%. The company operates 790 warehouses globally, including 548 in the U.S. The press release highlighted potential risks, including economic conditions and uncertainties stemming from the COVID-19 pandemic, affecting future performance.

Positive

• Net sales for July 2020 reached $13.04 billion, a 14.1% increase year-over-year.
• Total net sales for the 48 weeks ending August 2, 2020, were $149.66 billion, up 8.8% from the previous year.
• U.S. comparable sales increased by 13.3%, indicating strong domestic performance.
• E-commerce sales surged by 75.3%, reflecting a shift in consumer shopping behavior.

Negative

• Potential risks include economic uncertainties, competitive pressures, and the impact of COVID-19 on shopping patterns.
• Forward-looking statements caution about challenges such as supply-chain disruptions and reduced consumer spending.

ISSAQUAH, Wash., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $13.04 billion for the retail month of July, the four weeks ended August 2, 2020, an increase of 14.1 percent from $11.43 billion last year.

For the forty-eight weeks ended August 2, 2020, the Company reported net sales of $149.66 billion, an increase of 8.8 percent from $137.56 billion during the similar period last year.

Comparable sales were as follows:

	4 Weeks		48 Weeks
U.S.	13.3%		7.7%
Canada	10.4%		4.2%
Other International	15.9%		8.3%
Total Company	13.2%		7.3%
E-commerce	75.3%		45.4%

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

	4 Weeks		48 Weeks
U.S.	15.7%		8.8%
Canada	14.8%		6.8%
Other International	18.2%		10.8%
Total Company	15.8%		8.8%
E-commerce	76.1%		46.1%

Additional discussion of these results is available in a pre-recorded telephone message. It can be accessed by dialing 1-855-859-2056 (conference ID 8858694). This message will be available through 5:00 p.m. (PT) on Wednesday, August 12, 2020.

Costco currently operates 790 warehouses, including 548 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea, 13 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

Certain statements contained in this document and the pre-recorded telephone 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, 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), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, COVID-19 related factors and challenges, including (among others) the duration of the pandemic, the unknown long-term economic impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand away from discretionary or higher-priced products, reduced workforce due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or government mandates, or supply-chain disruptions, 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.                        

CONTACTS:	Costco Wholesale Corporation
	Richard Galanti, 425/313-8203
	Bob Nelson, 425/313-8255
	David Sherwood, 425/313-8239
	Josh Dahmen, 425/313-8254

 

FAQ

What were Costco's net sales for July 2020?

Costco reported net sales of $13.04 billion for July 2020, a 14.1% increase from last year.

How much did Costco earn in net sales for the year ending August 2, 2020?

For the 48 weeks ending August 2, 2020, Costco reported net sales of $149.66 billion, an 8.8% increase from the previous year.

What was the percentage increase in Costco’s e-commerce sales?

Costco's e-commerce sales increased by 75.3% for the month of July 2020.

How did Costco's U.S. comparable sales perform?

U.S. comparable sales increased by 13.3% for July 2020.

What risks did Costco mention in their latest press release?

Costco mentioned risks including economic conditions, competition, and uncertainties due to COVID-19's impact on consumer behavior.