Costco Wholesale Corp. (COST), one of the leading U.S. warehouse club operators, recently reported better-than-expected sales results for the five-week period ended Apr 4, 2010 driven by robust sales in international locations.
After portraying an increase of 9% in February 2010, Costco’s comparable-store sales for March rose 10%, reflecting a comparable sales growth of 5% at its U.S. locations and 28% at its international divisions. Year-to-date total comparable-store sales grew 7% with U.S. sales up 3% and international sales up 21%. The results were favorably impacted by rising gasoline prices and a weaker U.S. dollar.
Excluding the effects of gasoline prices and a softer dollar, Costco’s comparable-store sales for March climbed 3% with U.S. comparable sales up 2%, while international comparable sales up 7%. Year-to-date total comparable-store sales grew 3% with U.S. sales up 2% and international sales up 8%.
Total net sales for March surged 12% to $7.14 billion from $6.40 billion posted in the same month last year. Year-to-date sales increased 9% to $45.20 billion from $41.48 billion delivered in the same period last year.
The shift in the Easter holidays and 34 sales days for the five-week period for March, compared with 35 in the prior-year period hurt both total and comparable-store sales by 1% to 2%.
Costco, which faces stiff competition from BJ’s Wholesale Club Inc. (BJ) and Sam’s Club, a division of Wal-Mart Stores Inc. (WMT), currently operates 567 warehouses, including 414 in the U.S. and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the U.K., 9 in Japan, 7 in Korea, 6 in Taiwan and 1 in Australia.
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