Costco reported earnings rose 16.5 percent in its fiscal first quarter ended November 26 as same-store sales rose 3.8 percent, including a 2.0 percent gain in the U.S. Earnings topped analyst expectations.

For the first quarter, the company reported net revenues rose 6.2 percent to $57.8 billion from $54.4 million. Sales aligned with Wall Street’s consensus estimate of $57.79 billion.

Excluding membership fees, net sales were $56.72 billion, an increase of 6.1 percent from $53.44 billion for the first quarter of fiscal year 2023, ended November 20, 2022.

Same-store sales grew 3.8 percent, including a gain of 2.0 percent in the U.S., 6.4 percent in Canada, and 11.2 percent in Other International. E-commerce sales were up 6.3 percent.

On an adjusted basis, excluding impacts from changes in gas prices and foreign exchange, same-store sales were up 3.9 percent companywide. Comps were up 2.6 percent in the U.S., grew 8.2 percent in Canada, and gained 7.1 percent in Other International. E-commerce sales were up 6.1 percent.

Net income for the quarter was $1,589 million, $3.58 per diluted share, compared to $1,364 million, $3.07 per diluted share, last year. Analysts’ consensus estimate had been $3.41.

This year’s results included a tax benefit of $44 million, 10 cents per diluted share, related to stock-based compensation. Last year’s results included a charge of $93 million pre-tax, 15 cents per diluted share, primarily related to downsizing our charter shipping activities, and a tax benefit of $53 million, 12 cents per share, related to stock-based compensation.

The warehouse club operator also announced that the Board of Directors has declared a special cash dividend on Costco common stock of $15 per share, payable January 12, 2024, to shareholders of record as of the close of business on December 28, 2023. The aggregate amount of the payment will be approximately $6.7 billion.

Costco currently operates 871 warehouses, including 600 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, five in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

Photo courtesy Costco