Home Costco Closes Fiscal Year Beating Key Wall Street Estimates
September 23, 2022
Costco Closes Fiscal Year Beating Key Wall Street Estimates
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In the fourth quarter, Costco posted double-digit company comps as earnings and total sales beat an analyst estimate.

The company reported that net income for the fourth quarter was $1.87 billion, or $4.20 per diluted share, versus $1.67 billion, or $3.76 per diluted share, in the year-prior period.

Costco topped a MarketBeat-published analyst consensus estimate of $4.17 per diluted share, as well as a $72 billion sales estimate.

A write-off of information technology assets of $84 million pre-tax, or 14 cents per diluted share, negatively affected the year-earlier fourth quarter, Costco pointed out. 

Comparable sales adjusted to exclude the influence of gasoline price changes and foreign exchange came in at 9.6% in the United States, 13.7% in Canada and 11.3% in other international markets as total company comps gained 10.4% in the quarter year over year. E-commerce sales increased 8.4% from the year-before period, according to Costco.

Net sales for the quarter gained 15.2% to $70.76 billion year over year.

In a conference call, Costco CFO Richard Galanti said the U.S. comp gains in the period emerged from a domestic traffic increase of 5.2% and an average transaction increase of 10%. The best performing segments in the quarter were candy, frozen, kiosks, tire, lawn and garden, jewelry, toys, bakery, and deli. He added that membership renewal rates hit all-time highs as total household membership reached 65.8 million and total cardholders reached 118.9 million. Costco opened 23 locations in the fiscal year, Galanti said.

For the full fiscal year, net income was $5.84 billion, or $13.14 per diluted share, versus $5.01 billion, or $11.27 per diluted share, in the prior year, the company stated.

Adjusted comparable sales came in up 10.4% in the U.S., 12.1% in Canada and 10.2% in other international markets as total company comps gained 10.6% in the quarter year over year. E-commerce sales increased 10.4%, Costco indicated.

Net sales for the fiscal year gained 16% to $222.73 billion from the previous annum.

Costco operates 838 warehouse clubs, including 578 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 17 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. Costco also operates e-commerce websites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

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