Costco has completed another round of high sales, with core same-store growth in September rising 10%, Seeking Alpha reported, citing UBS analyst Michael Lasser.
There was also 8% growth in international sales, along with 7.3% in Canada, according to the report.
“Looking ahead, we believe Costco’s model remains well positioned in the current environment,” UBS said, per the report. “Its buying power should help it better mitigate rising costs and supply chains challenges than its competitors, further reinforcing the value of its membership. At the same time, we think COST will have a better chance to hold onto its gains into next year than many others in retail. Thus, we believe a sustained flywheel should support further upside to shares from here.”
Costco’s fourth-quarter earnings showed an 11.2% increase since 2020. There was also a 44.4% increase for the fiscal year.
“It’s continually improving with additional features coming soon,” Costco Executive Vice President and Chief Financial Officer Richard A. Galanti said, per a transcript of a Sept. 23 earnings call. “Digital payment using the Costco credit card — it’s in pilot in several locations with full rollout by the middle of next month. The ability to view warehouse receipts online also [will happen] next month. … And by October end, [we will have] an improved mobile site, improved look and feel, a new landing page and expanded information both for dot-com use and for enhanced warehouse information.”
The company saw its net sales boosted by 17.5%, hitting $61.4 billion. Net income was $1.67 billion, compared to $1.39 billion from the previous year.
The fourth quarter saw higher expenses due to the pandemic, which had the effect of driving up wages and sanitation costs.
In addition, Costco has also added back the food samples it was known for pre-pandemic, which it had temporarily done away with.