Costco Wholesale Corp (COST) released its fourth-quarter financial results after the market closed on Thursday, revealing a mixed bag of performance. While the membership-based retailer surpassed analysts’ expectations for earnings per share, it fell short of revenue estimates.
The company reported revenue of $79.697 billion for the quarter, missing the consensus estimate of $79.973 billion. However, Costco delivered earnings per share of $5.29, outperforming analyst estimates of $5.08.
Costco’s comparable sales saw robust growth across all regions. In the U.S., comparable sales increased by 5.3%, while Canada saw a 5.5% increase and the Other International segment rose by 5.7%. Overall, total comparable sales climbed 5.4% year-over-year, demonstrating the company’s continued strength in attracting and retaining customers.
Furthermore, Costco’s e-commerce sales surged by 18.9%, highlighting the retailer’s growing presence in the online marketplace. This significant jump in e-commerce sales is a testament to the company’s ability to adapt to evolving consumer preferences and capitalize on the growing demand for online shopping.
It’s important to note that the reported figures were adjusted to account for the total weeks in the quarter. Costco’s fourth quarter this year spanned 16 weeks, compared to 17 weeks in the fourth quarter of 2023.
Membership fees also saw a positive trend, reaching $1.512 billion, up from $1.509 billion in the previous year’s quarter. This increase reflects the company’s success in maintaining its loyal membership base and its ability to increase membership fees. In July, Costco announced a $5 price increase for its annual store membership, which went into effect on September 1st.
Costco continues to expand its operations, ending the quarter with 891 warehouses. The company also reported having $9.906 billion in cash and cash equivalents, demonstrating its strong financial position.
Management will host a conference call with investors and analysts at 5 p.m. ET to further discuss these results.
Costco shares experienced a slight dip in after-hours trading, dropping 1.10% to around $891.50 at the time of publication Thursday.
