Costco Reports Sales Boost in 2022 First Quarter Earnings

Costco Reports Sales Boost in 2022 First Quarter Earnings

Costco (NASDAQ: COST) reported better-than-expected first-quarter earnings with sales soaring as shoppers visit stores during the holiday season.

The American multinational corporation reported earnings of USD2.98 per share, compared to the expected USD2.67 a share. Additionally, revenue amounted to USD50.4 Billion, higher than analysts anticipated USD50.2 Billion. Costco’s same-store sales climbed 15%, also higher than the previously forecasted 13%.

“In terms of Q1 comp-sales metrics, traffic or shopping frequency increased 6.8% worldwide and was up 5.9% in the U.S.” Chief Financial Officer Richard Galanti told analysts in a conference call late Thursday. “Our average transaction or ticket was up 7.7% worldwide and 8.5% in the U.S. during the quarter. Excluding the positive impact from gas inflation and FX, the average ticket was up 2.5% worldwide and 3.5% in the U.S.”

The best performing departments included jewelry, tires, and home furnishings. Costco Logistics experienced a 50% rise in deliveries during the first quarter and currently represents 70% of the company’s U.S. e-commerce big- and bulk- products shipments.

“We continue to improve our e-comm mobile app with additional features. We’ve redesigned the app header and footer. We’ve updated and improved the menu layout. Our members now have the ability to view warehouse receipts online via both the app and desktop. Our co-branded Citi Visa card can now be linked to the Digital Membership Card and used for payment,” Galanti said. “Members are now able to much more easily reschedule e-comm deliveries in the U.S. and Canada. The same goes for rescheduling returns, with returns pickups.”

Additionally, Costco plans to implement new and improved labeling of fulfillment methods during the first half of 2022. “Members will be able to easily see fulfillment options, be it e-comm, same-day, and even nearby warehouse availability of a particular item,” he said.

Costco currently has a total of 828 warehouse clubs, in comparison to the 803 it had a year ago.

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