Costco Sales Soar In Q2

Costco maintained its momentum in the second quarter, producing strong comps and net sales.

Without foreign exchange and gas price volatility included, Costco comparable sales advanced 5.7% in the U.S., 2.5% in Canada and 7.4% in other international locations for a company total of 5.4%. E-commerce comps gained 27.3%. For the quarter, Costco posted a net sales increase of 10.8% to $32.28 billion.

In the fiscal second quarter ended February 18, Costco recorded net income of $701 million, or $1.59 per diluted share, versus $515 million, or $1.17 per diluted share, in the year-previous period.

Earnings per share got a boost from a $74 million, or 17 cent per share, benefit related to the new tax laws. In a conference call, Costco indicated that it would use part of the tax benefit to decrease costs to its members and part to compensate employees.

Adjusted for the one-time tax benefit, Costco’s $1.42 diluted earnings per share fell three cents short of a MarketBeat-published analyst average estimate, although revenue slightly beat Wall Street expectations.