Costco Net Picks Up 5.9 Percent in Third Quarter
Posted on May 25, 2011 by
ISSAQUAH, Wash.-Third-quarter net income for Costco finished at $324 million, up 5.9 percent from last year's third quarter.
The warehouse-club retailer accomplished this largely on the back of a 16 percent gain in net sales, to $20.2 billion. Total revenues, which include membership fees, also rose 16 percent to $20.6 billion.
Costco said same-club sales rose 12 percent in the third quarter when factoring in sales of gasoline. Without gas sales, same-club sales were up 7 percent.
The comparable-club results including gas parsed out to an increase of 10 percent for the U.S. clubs and 18 percent for the international locations. Taking gas out of this equation, U.S. same-club sales were up 6 percent and international same-club sales increased 11 percent.
While selling, general and administrative expenses rose 11 percent in dollar terms, they declined 41 basis points as a percentage of total revenues to 9.7 percent. Gross margin rang in at 12.4 percent, down 47 basis points from last year.