Costco Wholesale Corp. produced another round of solid results in its first quarter, posting gains across major merchandise segments, including Nonfoods.
Net income for the quarter was $2 billion, or $4.50 per diluted share, versus $1.8 billion, or $4.04 per diluted share, in the year-earlier quarter.
A Zacks Investment Research analyst consensus estimate was for earnings of $4.26 per diluted share and revenues of $67.33 billion.
With the effects of gasoline prices and foreign exchange rate volatility excluded, Costco comparable sales increased 6.4% with operations in the U.S. up 5.9%, comps in Canada up 9% and those in other international markets up 6.8%. Digitally-enabled comps increase by 20.5%, the company reported.
Net sales increased to $65.98 billion from $60.99 billion in the year-previous quarter. Total revenues, including membership fees, increased to $67.31 billion from $62.15 billion in the year-before period. Operating income was $2.46 billion versus $2.2 billion in the year-past quarter.
In a conference call, Gary Millerchip, Costco executive vice president and CFO, noted Nonfoods had a comparable sales gain in the mid-single digits as comps for gold and jewelry, special events and health and beauty grew in double digits, while those in major appliances, tires and small appliances grew in the high single-digits. Food and Sundries comps increased in the mid-single digits, while Fresh Food comps increased in the mid to high single digits.
“Our buyers continue to do an excellent job finding new and exciting items at great values while also adjusting our assortment to minimize the impact of tariffs,” Millerchip said, noting that Costco has continued shifting sourcing to mitigate the effects on its members of duties imposed by the United States. Costco recently sued the Trump administration to recover tariff payments in the event the U.S. Supreme Court rules some sweeping global tariffs are unlawful.
