Costco releases new quarterly financial report! Both revenue and profit exceed expectations!

It is learned that according to foreign media reports, despite continued high inflation, Costco's financial performance in the new quarter was impressive due to strong demand for consumer goods such as fresh food, candy and fuel products.

Data shows that in the fourth quarter ending August 28, Costco's revenue was US$72.09 billion, higher than analysts' forecast of US$70.8 billion; net profit was US$1.87 billion, higher than US$1.67 billion in the same period last year; earnings per share were US$4.20, higher than US$3.76 in the same period last year and higher than analysts' forecast of US$4.17.

In the fourth quarter, Costco's e-commerce sales increased by 7.1%, same-store sales increased by 15.8%, including a 9.6% increase in U.S. same-store sales. In addition, membership fee revenue increased by 7.5% to $1.33 billion worldwide, with a total membership of 65.8 million, and a renewal rate of nearly 93% for U.S. members.

Costco also announced its full-year revenue for fiscal year 2022. For the full year, Costco's net sales increased by 16.0% to US$222.73 billion, breaking the US$200 billion mark for the first time; e-commerce sales increased by 10.4%, and e-commerce sales accounted for 44.4% of the company's total sales.

However, Costco's gross margin was squeezed this quarter, falling from 10.92% to 10.18% as freight and labor costs rose due to inflation and global supply chain issues.

Joseph Feldman, an analyst at Telsey Advisory Group, said that in the current environment, consumers are looking for ways to save money, including more affluent people. This is a good sign because Costco sells a lot of food and consumables and helps people save money.

Still, Costco's total inventory at the end of the fourth quarter was up 26% from a year earlier, as the company ran promotions like major U.S. retailers Walmart Inc and Target Corp.

“Initial seasonal sell-through appears to be progressing well, and we expect total inventory to begin to decline as we have seen over the past several weeks,” Costco Chief Financial Officer Richard Galanti said on the earnings call.

When asked whether the annual membership fee would be increased, Richard Galanti said, "There are no specific plans to increase fees at present. We are satisfied with the current sales and membership growth. But in the future, the company will definitely increase this fee at some point."

Editor ✎ Nicole/

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