Amazing Comparable Sales Aren’t Enough to Move the Needle for Costco
Costco reported better than expected quarterly results after the closing bell on Thursday.
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When Costco Wholesale Corp. (NASDAQ: COST | COST Price Prediction) reported its fiscal first-quarter financial results after the markets closed on Thursday, the retailer said that it had $2.62 in earnings per share (EPS) and $43.21 billion in revenue. The consensus estimates had called for $2.05 in EPS and $42.41 billion in revenue. The same period of last year reportedly had $1.90 in EPS and $37.04 billion in revenue
Net sales for the first quarter increased by 16.9% to $42.35 billion, up from $36.24 billion last year. Membership fees increased 7.1% year over year to $861 million, up from $804 million
Comparable sales for the quarter increased by 17.1% (adjusted) year over year. This consisted of comparable sales from the U.S. of 17.0%, Canada of 16.8% and Other International of 17.7%. E-commerce comparable sales increased by 86.2% year over year.
Last year’s first quarter included an impact of $77 million, or $0.17 per diluted share, tax benefit related to stock-based compensation. This year’s results reflect an expense for COVID-19 premium wages of $212 million pretax, or $0.35 per diluted share.
On the books, Costco’s cash, cash equivalents and short-term investments totaled $14.42 billion at the end of the quarter, up from $13.31 billion at the end of the previous fiscal year.
The company did not issue any guidance in the report. However, analysts are calling for $2.36 in EPS and $42.67 billion in revenue for the fiscal second quarter.
Costco stock closed Thursday at $372.79, in a 52-week range of $271.28 to $393.15. The consensus price target is $383.87. Following the announcement, the stock was relatively flat at $374.00 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
