Costco Wholesale Corporation (COST) released its fiscal fourth quarter earnings after the market closed on Thursday, showcasing a blend of strong performance and slight revenue shortfalls.
The company reported earnings per share (EPS) of $5.29, surpassing Bloomberg’s consensus estimate of $5.07. However, revenue for the quarter fell short of expectations, totaling $79.7 billion against forecasts of $79.96 billion.
CFO Gary Millerchip highlighted the significance of quality and value during the earnings call, stating, “It’s very clear that quality and value have never been more important. As inflation has eased, we have observed our members beginning to spend more on non-food items, which is encouraging for us.”
Costco’s same-store sales exceeded projections, registering a 6.9% increase compared to the anticipated 6.4%. E-commerce sales also demonstrated notable growth, rising by 19.5%, though this was slightly below Wall Street’s expectation of 19.63%. The surge in sales was driven by robust performances in appliances, health and beauty products, tires, toys, and gift cards, among others.
In the fourth quarter, non-food categories exhibited impressive comparable sales as consumers gradually shifted their spending from essential groceries to a broader range of items. Categories such as gold and jewelry, gift cards, toys, home furnishings, and tires saw double-digit growth during the quarter.
Following the earnings announcement, Costco’s stock dipped by 1% in after-hours trading. Nonetheless, year-to-date, shares have risen nearly 40%, significantly outperforming the S&P 500, which has gained about 20% during the same period.
Related topics:
