Warehouse club chain Costco Wholesale has posted higher sales and profit in the last fiscal year, driven by strong demand for low-priced items.
The company’s net sales for the year ended August 31 rose 8.1 percent to $269.9 billion. Comparable sales increased 5.9 per cent, with the US up 6.2 per cent, Canada up 5 per cent and other markets up 4.8 per cent.
Adjust comparable sales, which exclude the impacts from changes in gasoline prices and foreign exchange, improved 7.6 per cent. E-commerce comparable sales surged 15.6 per cent.
On the bottom line, net income rose from $7.367 billion in the previous year to $8.099 billion.
For the fourth quarter, net sales jumped 8 percent to $84.4 billion and net income increased from $2.354 billion to $2.610 billion.
According to Reuters, the company’s quarterly revenue and profit beat estimates amid the broader industry slowdown. The growth reflected strong demand for lower-priced essentials as Americans increasingly seek value amid pressure due to rising inflation and a weakening labor market.
As of the end of the fiscal year, Costco operated 914 warehouses in the US, Canada, Puerto Rico, Mexico, Japan, the UK, South Korea, Australia and New Zealand, China, Spain, France, Sweden, and Iceland. It also operates e-commerce sites in the US, Canada, the UK, Mexico, Korea, Taiwan, Japan, and Australia.
