Costco Sales Rise 8% in May

Costco (NASDAQ: COST) today announced its sales numbers for May, and the company watched total sales rise 8% year-over-year to $8.8 billion for the four weeks ending June 1. For the 39 weeks ending on June 1, its sales rose to $82 billion, an increase of nearly $5 billion, or 6%, relative to the first 39 weeks of 2013.

In addition to strong gains in total sales, Costco also saw solid 6% growth in its comparable-store sales after making adjustments for gasoline prices and foreign exchange rates, as shown in the chart below:

So-called comps measure sales at stores that have been open at least a year. This marks the second year in a row in which comparable-store sales growth stood at 6% through the first 39 weeks of the fiscal year. In 2012 the numbers were slightly better and rose 7%.

In addition to strong sales growth, customer traffic was up 4.5% at the stores in the most recent four-week period, and the average sale was up by approximately 1%. The biggest gains in sales came from its automotive, lawn, and garden units, whereas the company’s director of investor relations, David Sherwood, did note Costco saw “soft sales in electronics and hardware.”

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Costco had a solid month in May, after losing a day in April to the Easter holiday. Its comparable-store sales had risen 5% year-over-year for the four- and 35-week periods in April, versus the 6% gains logged in May.

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