Costco Wholesale Corp. reported net and comparable sales gains highlighted by strong e-commerce results for its fiscal July period.
Net sales were $19.26 billion for the month, up 7.1% from the same period a year ago.
With the effects of changes in gasoline prices and foreign exchange excluded, Costco noted, adjusted comparable sales gained 7.2% overall year over year, with the U.S. up 6.3%, Canada up 10.2% and other international up 8.9%. E-commerce comps advanced 21.1%, year over year.
From the start of the COVID-19 pandemic through the current period, Costco e-commerce comparable sales jumped then slipped into negative territory as overall comps remained positive. For fiscal 2020, which saw the height of the pandemic impact on retail because of Costco’s fiscal year ending in late August, e-commerce sales increased 50.1%, adjusted. In fiscal 2021, as COVID-19’s impact lessened, adjusted e-commerce comps increased 42.6% year over year. In fiscal 2022, adjusted e-commerce comps increased 10.4% then declined 4.8% adjusted in fiscal 2023. For the first 48 weeks of fiscal 2024, as noted, e-commerce comps increased to 15.6%.
Overall adjusted comps in fiscal 2020 had a solid 9.2% increase. Costco’s fiscal year saw 13.4% adjusted overall comp gains in 2021, with overall adjusted comps improving by 10.6% in fiscal 2022 and by 5.2% in fiscal 2023. For the first 48 weeks of fiscal 2024, overall adjusted comps increased 5.8%.
The trend suggests consumers who first tapped Costco digitally as source for products during the pandemic shifted to more in-store shopping as it waned. However, recent figures indicate Costco customers are more enthusiastic about the company as an omnichannel resource, purchasing more online even as they continue to spend in physical stores.
In a conference call, Costco noted, for July, comp traffic gained 5.1% in the U.S. By region, the Northeast, Midwest and Texas delivered the strongest comps for the warehouse club operator. With regard to merchandise categories, Non Foods comps increased in the low double digits, led by jewelry, gift cards and toys and seasonal. Food and Sundry comps gained in the mid single digits, while Fresh Food comps were up in the high single digits.
