Costco (COST) 2024 Q2 Earnings
Mandel Gunn | AFP | Getty Images
costco On Thursday, the company missed Wall Street’s holiday quarter sales expectations, despite reporting year-over-year sales growth and strong e-commerce growth.
The company’s stock price fell about 4% in aftermarket trading. The company’s stock had hit a 52-week high earlier in the day.
Here’s what retailers reported 2nd quarter of 2024 Comparison with Wall Street expectations based on analyst research by LSEG (formerly Refinitiv):
- Earnings per share: $3.92 vs. $3.62 expected
- Revenue: $58.44 billion vs. $59.16 billion expected.
Costco’s net income for the three months ended Feb. 18 rose to $1.74 billion, or $3.92 per share, from $1.47 billion, or $3.30 per share, a year earlier.
Costco’s sales for the quarter increased from $55.27 billion in the year-ago period.
The company’s comparative sales were up 5.6% year-on-year and 4.3% in the U.S. Excluding gasoline price and foreign currency fluctuations, the index was up 5.8% overall and 4.8% in the U.S.
More shoppers visited Costco and spent more during the quarter. Traffic grew 5.3% worldwide and 4.3% in the U.S., CFO Richard Galanti said on the company’s earnings call. He said average ticket numbers have increased in the U.S. and around the world.
Inflation was about flat in the quarter from a year earlier, allowing retailers to lower prices on some goods, Galanti said. For example, he said he was able to reduce the price of reading glasses from $18.99 to $16.99 and the price of 48 Kirkland Signature batteries from $17.99 to $15.99. He said inflation last quarter was around 1% compared to the same period last year.
Galanti said many new products in categories such as sporting goods and lawn and garden will also be priced lower than they were a year ago due to lower freight and product costs.
Costco has 875 warehouses, 603 of which are located in the United States and Puerto Rico. There are also clubs in about a dozen other countries, including Canada, Mexico, Japan and China.
In the second quarter, Costco opened four new clubs, including three in the United States and one in Shenzhen, China. Galanti said this is the sixth club to open in China. Two of his three new U.S. stores were Costco Business Centers, specifically aimed at small business owners such as restaurateurs.
As of Thursday’s close, Costco stock is up nearly $19.% Since the beginning of the year. The stock hit a 52-week high of $787.08 earlier in the day and closed at $785.59, giving the company a market capitalization of nearly $350 billion.
digital growth
Galanti announced Thursday that Costco has made changes to its website to improve the experience for online shoppers. The company has also tweaked its business to become more digitally savvy.
E-commerce sales for the quarter increased 18.4% year over year.
For example, Costco rolled out its new mobile app homepage in February. It loads in less than 2 seconds, compared to 8 seconds previously. He said the move is significant because about 60% of Costco’s e-commerce business is done through mobile apps. mobile browser.
Last week, the company introduced Apple Pay to all online members. We’re also adding more products to CostConnect, our seller platform that allows members to buy directly from select retail suppliers at discounted prices. The market sells a wide variety of items, including electronics, bicycles, and clothing.
E-commerce sales have also gained momentum in recent months as Costco has gotten better at promoting the value of online items, especially big-ticket items like appliances, mattresses and tires, he said.
Galanti said app downloads increased by 2.8 million in the quarter and now total about 33 million.
Membership fee
Investors have been waiting for Costco to raise membership fees for more than a year. The company has typically raised annual fees about every five-and-a-half years. The last price increase was in June 2017.
But Galanti said the company has not yet increased its rates. However, he added, “It’s not a matter of if, it’s a matter of when.”
The longtime CFO, who is stepping down, has hosted all but one of Costco’s earnings conferences since it went public in 1985. He joked on a conference call Thursday that raising fees would be the job of his successor, Gary Millerchip, the former chief financial officer at Kroger. We will take over in mid-March.
“I joke with Gary, but it’s going to be on his watch, not mine,” Galanti said.
This is breaking news. Please check back for the latest information.
Summarize this content to 100 words Mandel Gunn | AFP | Getty Imagescostco On Thursday, the company missed Wall Street’s holiday quarter sales expectations, despite reporting year-over-year sales growth and strong e-commerce growth.The company’s stock price fell about 4% in aftermarket trading. The company’s stock had hit a 52-week high earlier in the day.Here’s what retailers reported 2nd quarter of 2024 Comparison with Wall Street expectations based on analyst research by LSEG (formerly Refinitiv):Earnings per share: $3.92 vs. $3.62 expectedRevenue: $58.44 billion vs. $59.16 billion expected.Costco’s net income for the three months ended Feb. 18 rose to $1.74 billion, or $3.92 per share, from $1.47 billion, or $3.30 per share, a year earlier.Costco’s sales for the quarter increased from $55.27 billion in the year-ago period.The company’s comparative sales were up 5.6% year-on-year and 4.3% in the U.S. Excluding gasoline price and foreign currency fluctuations, the index was up 5.8% overall and 4.8% in the U.S.More shoppers visited Costco and spent more during the quarter. Traffic grew 5.3% worldwide and 4.3% in the U.S., CFO Richard Galanti said on the company’s earnings call. He said average ticket numbers have increased in the U.S. and around the world.Inflation was about flat in the quarter from a year earlier, allowing retailers to lower prices on some goods, Galanti said. For example, he said he was able to reduce the price of reading glasses from $18.99 to $16.99 and the price of 48 Kirkland Signature batteries from $17.99 to $15.99. He said inflation last quarter was around 1% compared to the same period last year.Galanti said many new products in categories such as sporting goods and lawn and garden will also be priced lower than they were a year ago due to lower freight and product costs.Costco has 875 warehouses, 603 of which are located in the United States and Puerto Rico. There are also clubs in about a dozen other countries, including Canada, Mexico, Japan and China.In the second quarter, Costco opened four new clubs, including three in the United States and one in Shenzhen, China. Galanti said this is the sixth club to open in China. Two of his three new U.S. stores were Costco Business Centers, specifically aimed at small business owners such as restaurateurs.As of Thursday’s close, Costco stock is up nearly $19.% Since the beginning of the year. The stock hit a 52-week high of $787.08 earlier in the day and closed at $785.59, giving the company a market capitalization of nearly $350 billion.digital growthGalanti announced Thursday that Costco has made changes to its website to improve the experience for online shoppers. The company has also tweaked its business to become more digitally savvy.E-commerce sales for the quarter increased 18.4% year over year.For example, Costco rolled out its new mobile app homepage in February. It loads in less than 2 seconds, compared to 8 seconds previously. He said the move is significant because about 60% of Costco’s e-commerce business is done through mobile apps. mobile browser.Last week, the company introduced Apple Pay to all online members. We’re also adding more products to CostConnect, our seller platform that allows members to buy directly from select retail suppliers at discounted prices. The market sells a wide variety of items, including electronics, bicycles, and clothing.E-commerce sales have also gained momentum in recent months as Costco has gotten better at promoting the value of online items, especially big-ticket items like appliances, mattresses and tires, he said.Galanti said app downloads increased by 2.8 million in the quarter and now total about 33 million.Membership feeInvestors have been waiting for Costco to raise membership fees for more than a year. The company has typically raised annual fees about every five-and-a-half years. The last price increase was in June 2017.But Galanti said the company has not yet increased its rates. However, he added, “It’s not a matter of if, it’s a matter of when.”The longtime CFO, who is stepping down, has hosted all but one of Costco’s earnings conferences since it went public in 1985. He joked on a conference call Thursday that raising fees would be the job of his successor, Gary Millerchip, the former chief financial officer at Kroger. We will take over in mid-March.”I joke with Gary, but it’s going to be on his watch, not mine,” Galanti said.This is breaking news. Please check back for the latest information.
https://www.cnbc.com/2024/03/07/costco-cost-q2-2024-earnings.html Costco (COST) 2024 Q2 Earnings