U.S. Comps Drive Costco In Q3

Strong U.S. comparable store sales coupled with higher membership fees were key factors in driving revenue in Costco’s fiscal year third quarter.

Sales for the period ended May 7 grew 8% to $28.22 billion, up from $26.15 billion in the same quarter the previous fiscal year. Company-wide comparable store sales were up 5%, with those in the U.S. up 6%.

Net income for the quarter was $700 million, or $1.59 per diluted share, up from net income of $545 million, or $1.24 per diluted share in the third quarter of fiscal year 2016. Quarterly membership fees were up $26 million.

Richard Galanti, Costco’s chief financial officer, pointed to several categories including housewares, domestic and apparel showing solid growth in the quarter.

Net sales for the first 36 weeks increased 6%, to $84.82 billion as compared to net sales of $80.34 billion in the same time frame the prior year. Comparable store sales company-wide and in the U.S. increased 5%. Net income for the first 36 weeks was $1.8 billion, or $4.01 per diluted share, versus net income of $1.6 billion, or $3.56 per diluted share, in the first three quarters of fiscal year 2016.