Costco Keeps Drawing Homebound Shoppers
December 10 2020 - 6:54PM
Dow Jones News
By Sarah Nassauer
Costco Wholesale Corp. reported strong quarterly sales Thursday
as homebound Americans continue to spend more on food, homegoods
and fitness products during the pandemic, especially the
high-income shoppers that make up much of the warehouse chain's
shopper base.
Comparable sales, those from stores or digital channels
operating for at least 12 months, rose 17.1% during the quarter
ended Nov. 22, excluding the impact of gasoline sales and currency
movements. The retailer's e-commerce sales jumped 86% in the
quarter.
Big-box retailers including Walmart Inc. and Target Corp. have
generally fared well amid the coronavirus crisis, offering
pandemic-weary shoppers one-stop shopping and in some cases, easy
buy online, pick up in store parking lot options.
Costco's shoppers, who pay a membership fee to shop, are
spending less on travel and eating out during the pandemic and more
on food, appliances, homegoods and other items, said finance chief
Richard Galanti on a call with analysts Thursday. "They seem to
have redirected some of those dollars," he said.
Profits also rose during the quarter to $1.17 billion, up from
$844 million in the same period last year. Costco raised wages
during the quarter due to Covid-19, adding about $212 million in
costs for the period, said Mr. Galanti. But the company boosted
profits elsewhere, for example selling more food by reducing
spoilage, he said.
Revenue grew to $43.2 billion in the quarter, from $37 billion a
year earlier.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
December 10, 2020 18:39 ET (23:39 GMT)
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