Costco Tops Quarterly Earnings, Revenue Views; Comparable Sales Growth Lags
Article excerpt
Costco Wholesale (COST) reported better-than-expected earnings and revenue for its fiscal fourth quarter, though the warehouse chain's comparable sales growth missed market estimates. Net income advanced to $6.75 a share for the quarter ended Aug. 30 from $5.87 a year earlier, the company said late Thursday. The consensus on FactSet was for $6.54. Revenue climbed to $95.72 billion from $86.16 billion, ahead of Wall Street's views for $94.97 billion. Comparable sales, excluding the impacts from changes in gasoline prices and foreign currency, rose 6.7% at the company level, but trailed the 9% growth rate modeled by analysts. The metric increased 7.2% in the US, 4.6% in Canada and 6.2% internationally. Membership fee income increased 7.3% year over year to $1.85 billion. The company ended the three-month period with 84.1 million paid members, representing annual growth of 3.8%, Chief Financial Officer Gary Millerchip said during an earnings call, according to a FactSet transcript. Paid membership growth saw an eighth straight deceleration, partly reflecting an increase in fill-in warehouse locations, which generate fewer new members than white-space properties, and fewer warehouse openings in Asia, Truist Securities said. "The (business) remains incredibly strong, but we may need to see member growth reaccelerate to help re-rate the (stock's) multiple," the brokerage said in a...
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The company intends to open 33 warehouses in fiscal 2027, of which five are relocations, Vachris said.
