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Costco (COST) slightly beat estimates in its fiscal first quarter results as inflation-weary shoppers turn to the wholesale retailer.
Adjusted earnings per share came in at $4.04, compared to Bloomberg consensus estimates of $3.81. Revenue of $62.15 billion also beat expectations of $61.98 billion.
Same-store sales, excluding fuel, grew 7.2% in the quarter, boosted by its US business, followed by international and then Canada.
Foot traffic, up 5.1%, missed the 6.87% jump Wall Street hoped for, but ticket size grew 0.1%, besting the 0.40% decline the Street predicted.
Shares are flat Thursday after the results. Year to date, Costco stock is up more than 50%, outpacing the 27% gain for the S&P 500 (^GSPC).
Here’s what Costco reported for its fiscal first quarter, which ended Dec. 4, 2024, compared to Bloomberg consensus estimates.
Revenue: $62.15 billion versus $61.98 billion
Adjusted earnings per share: $4.04 versus $3.81
Total company comparable sales growth, excluding fuel: 7.2% versus 6.26%
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US same-store sales growth: 7.2% versus 6.14%
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Canada same-store sales growth: 6.7 % versus 5.68%
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Other international sales growth: 7.1% versus 7.08%
E-commerce growth: 13.2% versus 14.1%
Membership fee revenue: $1.17 billion versus $1.17 billion
On Sept. 1, Costco hiked the price of its Gold Star membership by $5 to $65 and the price of its Executive membership by $10 to $130. This was the first full quarter since the price hike.
The company hasn’t raised its membership fees since 2017, and Costco said it delayed the increase until the team felt like inflation started to dissipate and consumers’ spending power returned.
Membership fee income grew 7.8% to $1.17 billion, compared to the $1.08 billion reported last year.
In the first quarter, renewal rates reached 90.4%. In total, there are 138.8 million cardholders, a 7.2% increase year over year.
The company doubled down on scanning membership cards at the door. CEO Ron Vachris said in the previous quarter that allowed operators to know real-time foot traffic and prompt customers to renew memberships.
“Membership growth remains healthy as consumers seek value and existing members continue to trade up to the Executive membership level,” cwrote in a note to clients.
Costco operates 897 warehouses worldwide as of last quarter, up from 891 last quarter.
Its e-commerce business grew 13.2% but missed estimates of 14.1%.
Online sales were boosted by gold and jewelry, in addition to hardware, gift cards, home furniture, sporting goods, and health and beauty aids.
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