Costco Q4 Sales Rise With Food A Key Driver

Costco closed out its fiscal year with a strong fourth quarter as sales company-wide were up more than 9%, driven by consumables and sundries. 

For the 17-week period ended Sept. 3, total sales were $77.43 billion, an increase of 9.4% from the comparable quarter the previous fiscal year. Comparable store sales in all geographic regions were up 1.1% in the quarter, and up 3.8% when excluding the impacts of gasoline and foreign exchange rates. U.S. store comps in the quarter were up 3.1% when excluding gasoline and exchange rates. 

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Net income at Costco for the 17-week fourth quarter was $2.160 billion, or $4.86 per diluted share, compared to $1.868 billion, $4.20 per diluted share, in the 16-week fourth quarter last year.

Net sales for the 53-week fiscal year were $237.71 billion, an increase of 6.7% from $222.73 billion in the 52-week fiscal year of 2022. Net income for the 53-week fiscal year was $6.292 billion, $14.16 per diluted share, compared to $5.844 billion, $13.14 per diluted share, in the 52-week prior year.

During a conference call to review results, Richard Galanti, executive vice president, and chief financial officer, said during the fourth quarter, food and sundries were strong, with sales of fresh foods also strong. 

Store traffic during the fourth quarter increased 5.2% worldwide and 5% in the United States. Costco’s average transaction was down 3.9% worldwide and down 4.5% in the U.S. The decline was the result of weakness from bigger ticket nonfood discretionary items, as well as the gas price deflation, Galanti reported.

The retailer ended the quarter with 71 million paid household members, up 7.9% versus a year ago; and 127.9 million cardholders, up 7.6%. 

In the fourth quarter, Costco opened nine net new warehouses, including five new buildings in the U.S., two in China, and one each in Japan and Australia. The company finished its fiscal year with 23 net new units, as well as three relocations.

During the first 12 weeks of fiscal 2024, Costco plans on opening 10 new stores and will relocate one location. Nine of the new stores will be located in the U.S. and one in Canada.