Issaquah, Washington. Costco Wholesale Corporation (NASDAQ: COST), the largest membership-only warehouse club, reported solid fiscal third quarter and year-to-date results for 2024 on Wednesday. The company’s net sales climbed 9.1% year-over-year to $57.39 billion for the 12-week quarter ended May 12th, buoyed by higher membership fees and continued strong demand from its loyal customer base.
Comparable sales, an important retail metric, increased 6.6% for the quarter, when adjusted for gasoline prices and foreign exchange impacts. The company saw particular strength in its e-commerce channel, with comparable online sales surging 20.7%.
«Costco’s value proposition continues to resonate with consumers in an inflationary environment,» said David Kolowski, senior equity analyst at Gordon Haskett Research Advisors. «The company’s ability to leverage its massive purchasing scale allows it to pass along savings to members.»
For the first 36 weeks of fiscal 2024, Costco’s net income rose 21.4% to $5.01 billion or $11.27 per diluted share, compared to $4.13 billion or $9.30 per share in the year-ago period. Revenue climbed 7.0% to $171.44 billion year-to-date. Membership fee income, which is deferred and recognized over the annual subscription period, increased 8.0% to $3.32 billion so far this fiscal year.
Growing despite inflation and other negative trends in retail
The warehouse club model has proven resilient in the face of economic uncertainty and evolving consumer spending patterns. By selling bulk merchandise and annual membership fees, Costco can keep operating costs low and prices affordable for its 62.1 million member households.
Costco ended the quarter with 878 warehouses worldwide, including 605 in the United States and Puerto Rico. The company plans to open around 27 new locations in fiscal 2024. Management also announced an $8.5 billion special dividend paid out to shareholders in the current fiscal year.
