Costco Sales Dip In April

Costco reported net sales of $11.39 billion for the retail month of April, the four weeks ended May 3, 2020, a decrease of 1.8% from $11.60 billion last year.

Comparable sales declined as follows: the U.S. declined 3.3%, Canada declined 11.7% and international declined 4.6%, for a company total decline of 4.7%. E-commerce, however, rose by 85.7%.

Comparable sales excluding the impacts from change in gasoline prices and foreign exchange were as follows: the U.S. declined zero percent, Canada declined 5%, international was up 2%, for a company total decline 0.5%.

April sales were negatively impacted by the COVID-19 pandemic, the company noted. Stay-at-home orders, social distancing restrictions and some mandatory closures led to decreased traffic and sales in its warehouses.  Limited service in travel and food courts; closures of most of its optical, hearing aid and photo departments, and lower volume and price deflation in the gasoline business negatively impacted April sales by an estimated 12 percentage points, of which approximately 70% related to gasoline.

Costco pointed out that comparable sales in April excluding gasoline, optical, travel, food court, hearing aids, photo, and foreign exchange were actually up 11.2% in the U.S., up 1.5% in Canada and up 4.3% in international, for a company total of 8.6%.