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Costco on Thursday missed Wall Street’s revenue expectations for its holiday quarter, despite reporting year-over-year sales growth and strong e-commerce gains.
Shares of the retailer fell about 4% in aftermarket trading. The retailer’s stock had hit a 52-week high earlier in the day.
Here’s what the retailer reported for its fiscal second quarter of 2024 compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $3.92 vs. $3.62 expected
- Revenue: $58.44 billion vs. $59.16 billion expected
In the three-month period that ended Feb. 18, Costco’s net income rose to $1.74 billion, or $3.92 per share, compared to $1.47 billion, or $3.30 per share, a year earlier.
Costco’s revenue for the quarter increased from $55.27 billion in the year-ago period.
Comparable sales for the company increased 5.6% year over year and 4.3% in the U.S. Excluding changes in gas prices and foreign currency, the metric increased 5.8% overall and 4.8% in the U.S.
Sales of food and sundries, a category that includes snack foods and beverages, were up by mid single-digits in the quarter, CFO Richard Galanti said on the company’s earnings call. Fresh foods were up high single-digits and non-foods were up mid single-digits.
Ancillary businesses, which includes more service-related purchases like travel, were up by low single-digits, he said. Costco’s food court, pharmacy and optical centers were top performers in the quarter and gas was down low single-digits as the price per gallon fell.
More shoppers came to Costco, and they spent more on their shopping trips during the quarter. Traffic increased 5.3% across the globe and 4.3% in the U.S., Galanti said on the earnings call. Average ticket increased in the U.S. and worldwide, he said.
Inflation was roughly flat year over year in the quarter, which allowed the retailer to reduce prices for some items, Galanti said. For example, he said, it’s been able…
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