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Costco Wholesale Corporation (NASDAQ:COST) dipped slightly in postmarket trading on Thursday after disclosing its FQ3 earnings report.
Comparable sales were up +6.6% during the quarter. The big box retailer said comparable sales were 6.2% higher in the U.S., rose 7.7% in Canada, and were 7.7% higher for international markets. E-commerce sales rose 20.7% during the quarter. After backing out gas prices and F/X swings, comparable sales were up 6.0% in the U.S. vs. +5.5% consensus and were 6.5% higher overall vs. +5.9% consensus.
Costco (COST) topped estimates on the EPS line by $0.10 per share to mark its fourth profit beat in a row.
Membership fee income was $1.12 billion vs $1.04 billion a year ago.
Net income for the quarter was $1.68 billion, vs. $1.30 billion a year ago.
Merchandise inventory at the end of the quarter was $17.43 billion, vs. $16.65 billion on September 3, 2023.
At the end of the quarter, Costco (COST) operated a total of 878 warehouses, including 605 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven in China, four in Spain, two in France, and one in Iceland, New Zealand, and Sweden. Costco (COST) also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia.
Costco (COST) did not announce a membership fee increase with its earnings release. The retailer last increased membership fees in 2017 when Gold Star membership went to $60 from 55 and executive membership went to $120 from $110. Costco (COST) also fired off membership fee hikes in 2006 and 2011.
Costco (COST) is set to hold a conference call at 5:00 p.m.
Shares of Costco (COST) edged 0.15% higher in after-hours trading after hitting a 52-week high of $819.50 during the regular session. The stock is up more than 25% on a year-to-date basis.
