US: Disappointing Quarter For Costco

Costco has reported disappointing sales figures for its third quarter ending 8 May. Total sales increased 2% to $26.15bn, although overall comparable sales were flat.

Figures were impacted by performance in its core domestic market where it reported no growth in quarterly comparable sales for the first time in six years. Meanwhile, comparable sales in Canada edged up 1% in Canada but declined 2% in all other countries where Costco operates.

However, excluding the negative impacts from petrol price deflation and the strong dollar, comparable sales rose 3% in the US, 8% in Canada and 3% in other countries. The group’s pre-tax profits also increased, up 4.5% to $835m.

Costco currently operates 705 warehouses, including 493 in the US and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the UK, 25 in Japan, 12 in Korea, 12 in Taiwan, eight in Australia and two in Spain.