Solid sales growth at Costco during the second quarter and a 6% same store sales increase at U.S. clubs did not translate into strong profits for the warehouse club operator whose earnings fell shy of analysts’ estimates.
Costco’s worldwide revenues for the 12 week period ended May 11 increased 7.1% to nearly $25.8 billion and consisted of product sales that increased 7.1% to slightly more than $25.2 billion and membership revenue which rose 5.6% to $561 million. Total company same store sales increased 4% and consisted of a 5% U.S. comp increase and a 3% international increase. Both figures were negatively affected by lower gasoline prices and foreign exchange. U.S. comps increased 6% excluding the negative effects of gas prices and international comps increased 8% on a constant currency basis.
Costco saw its profits increase 3% to $473 million, or $1.07 a share, from $459 million, or $1.04 a share. The consensus among analysts was that Costco would earn $1.09 a share.
Costco ended its second quarter with a total of 655 warehouses worldwide, including 464 locations in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 19 in Japan, 10 in Taiwan, 10 in Korea, six in Australia, and one in Spain. The company plans to open as many as eight new warehouses during the second half of its fiscal year.