Costco Wholesale Corporation (COST), one of the leading U.S. warehouse club operators, recently reported better-than-expected sales for the four-week period ended Jan 31, 2010.
Costco’s comparable-store sales for January rose 8%, reflecting a comparable sales growth of 4% at its U.S. locations and 25% at its international divisions. Year-to-date, total comparable-store sales grew 6%, with U.S. sales up 3% and international sales up 18%. 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 January rose 2%, with U.S. comparable sales remaining flat, while international comparable sales were up 9%. Year-to-date, total comparable-store sales grew 3%, with U.S. sales up 2% and international sales up 8%.
Total net sales for January surged 10% to $5.62 billion from $5.09 billion reported in the same month last year. Year-to-date sales increased 8% to $32.45 billion from $30.02 billion reported in the same period last year.
Costco currently operates 566 warehouses, including 413 in the United States and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the United Kingdom, 9 in Japan, 7 in Korea, 6 in Taiwan and 1 in Australia.
Costco faces stiff competition from BJ’s Wholesale Club Inc. (BJ) and Sam’s Club, a division of Wal-Mart Stores Inc. (WMT).
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