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.