Costco’s sales increased 9.8% from USD11.63 billion to USD12.77 billion for the four-week period ended December 2, 2018.
Comparable club sales (comps) increased 12.2% in U.S., 1.8% in Canada, and 0.7% in other international markets for a total company increase of 9.2%. Excluding the effects of gasoline price changes and foreign exchange, comps increased 10.1% in the U.S., 5.0% in Canada, and 3.7% in other international markets for a total company increase of 8.5%.
- Average transaction increased 3.1% year over year.
- Comp traffic frequency increased 5.9% globally and 6.8% in the U.S.
- Cannibalization’s negative impact was approximately 0.6% in the U.S., 0.75% in Canada, 0.75% in other international markets, and 0.7% for the total company.
- eCommerce comp sales were up 46.1% for the period, positively affected by an accounting change.
- The strongest-performing regions were the Midwest, San Diego, and the Bay area. Internationally, Spain, Mexico, and Japan saw the strongest results. Foreign currency changes impacted November comp sales negatively by 1.00% for the total company, 3.75% for Canada, and 3.75% for other international markets.
On a department basis, Costco reported the following comp results, excluding the effect of foreign exchange.
- Foods and sundries comps were positive mid-to-high-single-digits. The strongest-performing departments were candy, tobacco, sundries, and frozen.
- Hardlines comps were positive in the mid-teens. Automotive, sporting goods, and majors were the better-performing departments.
- Softlines comps were up low-double-digits. Small appliances, home furnishings, apparel, and special order kiosks were among the better performing departments.
- Fresh foods comps were up mid-single-digits with strong growth across meat, deli, and bakery.
- Ancillary exhibited the strongest performance in gasoline, optical, and food court. Gasoline price inflation had a positive impact on total comps sales of 0.5%. The average price per gallon of fuel was up 5% at USD2.81 compared to USD2.68 last year.
As of November 07, 2018, Costco operated 768 clubs: 533 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 15 in South Korea, 13 in Taiwan, 10 in Australia, two in Spain, one in Iceland, and one in France. Costco also operates eCommerce web sites in the U.S., Canada, the United Kingdom, Mexico, South Korea, and Taiwan.
Source: Costco Investor Relations