Costco Wholesale Corp. reported earnings in the fiscal third quarter ended May 7 that missed analysts’ expectations. Same-store sales excluding the impacts of changes in gasoline prices and foreign exchange were up 3.5 percent.
Revenue (including membership fees) of $53.65 billion compared with $54.66 billion expected. Adjusted earnings per share of $2.93 was below Wall Street’s consensus estimate of $3.30.
Net sales for the quarter increased 1.9 percent, to $52.60 billion, from $51.61 billion last year.
Comparable-store sales were down up 0.3 percent with same-store sales down 0.1 percent in the U.S., off 1.0 percent in Canada, and up 4.1 percent in Other International. E-commerce sales were down 10.0 percent.
Excluding the impacts from changes in gasoline prices and foreign exchange, same-store sales were up 3.5 percent. Comes rose 1.8 percent in the U.S., 7.4 percent in Canada and 8.4 percent in Other International. E-commerce sales were down 9.0 percent.
Net income for the quarter was $1.30 billion, $2.93 per diluted share, which includes a non-recurring charge to merchandise costs of $298 million pretax, $0.50 per diluted share, primarily for the discontinuation of its charter shipping activities. Last year’s third quarter net income was $1.35 billion, $3.04 per diluted share, which included a non-recurring $77 million pretax charge, $0.13 per diluted share, for incremental employee benefits.
Net sales for the first 36 weeks increased 5.5 percent, to $160.28 billion, from $151.97 billion last year. Net income for the first 36 weeks was $4.13 billion, $9.30 per diluted share, compared to $3.98 billion, $8.94 per diluted share, last year.
Costco currently operates 853 warehouses, including 587 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 32 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, three in China, 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.