Costco Reports 12.3% Net Sales Increase for Five-Week Period Through Jan. 3
By Maria Armental
Costco Wholesale Corp.'s sales rose 12% for the five weeks ended
Shares closed at $370.02, down $1.5% for the day, and recently
traded at $370.40 in after-hours trading.
Costco reported $19.14 billion in net sales for the five-week
period. Comparable sales, a closely watched performance metric that
looks at sales at warehouse-club locations open for more than a
year, rose 10.7%. Excluding the impact from gasoline sales and
currency swings, core comparable sales rose 10.9%.
Analysts surveyed by Consensus Metrix expected a 10.1% increase,
or 11.2% when adjusted for gas sales and currency swings.
Costco, one of the companies whose services were deemed
essential and remained open during the coronavirus pandemic, has
largely fared well financially during the pandemic, offering
one-stop shopping for such things as food and appliances. In
December, it paid a special cash dividend of $10 a share--the first
special dividend since 2017.
Costco ended the first quarter on Nov. 22 with $13.59 billion in
"Someone asked the question after we announced the $10 dividend,
we could have done more," Chief Financial Officer Richard Galanti
said in a conference call to discuss the first-quarter results.
"The answer is we could have but why rush?"
"We still don't know what's going to happen with COVID and what
may happen next year in the economy," Mr. Galanti said.
Costco currently operates 803 warehouses, including 558 in the
United States and Puerto Rico.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
January 06, 2021 16:40 ET (21:40 GMT)
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