Costco Wholesale Corp. delivered stronger-than-expected first-quarter results, fueled by robust digital growth, rising membership income, and continued global expansion.
The membership warehouse retailer reported a 20.5% year-over-year jump in digital sales, while website traffic increased 24%, CFO Gary Millerchip said on the company’s earnings call.
Same-day delivery — offered through partnerships with Instacart in the U.S. and Uber Eats and DoorDash internationally — outperformed overall e-commerce growth during the quarter.
Costco ended the period with 81.4 million paid members, up 5.2% year over year. Membership fee income climbed 14%, underscoring the strength of the retailer’s subscription-based model.
During the quarter, Costco opened eight warehouse locations, including a relocation in Canada, its third store in France, four new U.S. locations, and two Canadian Business Centers.
CEO Ron Vachris reaffirmed the company’s plan to open 30 or more warehouses annually.
For the quarter ended Nov. 23, Costco reported net income of $2 billion, or $4.50 per share, up from $1.79 billion, or $4.04 per share, a year earlier and ahead of Wall Street estimates of $4.27 per share.
Results included a $72 million tax benefit related to stock-based compensation, compared with a $100 million benefit in the prior-year period.
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Net sales rose 8.2% to $65.98 billion from $60.99 billion a year earlier. Including membership fees, total revenue reached $67.3 billion, slightly above analyst expectations of $67.14 billion.
Shopping frequency increased 3.1% globally, including a 2.6% gain in the U.S., while average ticket rose 3.2% worldwide.
Comparable sales increased 6.4% overall, with U.S. comps up 5.9% and Canada rising 6.5%. International comparable sales climbed 8.8%.
Excluding gasoline price and foreign exchange impacts, comparable sales increased 5.9% in the U.S., 9.0% in Canada, and 6.8% internationally.
Costco currently operates 923 warehouses worldwide, including 633 in the U.S. and Puerto Rico, 114 in Canada, and locations across Mexico, Europe, Asia, and Australia.
The retailer also operates e-commerce sites in multiple international markets, including the U.S., Canada, the U.K., Japan, and Australia.
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