Costco Sales Rise 10%, Hit $12.4 Billion In Fis. Q2

By Jeff Malester On Mar 7 2005 - 8:00am

Costco Wholesale sales jumped 10 percent in the club’s fiscal second quarter, hitting $12.4 billion, up from $11.3 billion in the year-ago period.

Net income, which was positively impacted by a one-time $52.1 million income tax benefit, soared 35 percent. This reached $305.5 million, from $226.8 million in the same three months the previous year. Comp-store sales for U.S. locations rose 6 percent in the second quarter. Total company comps increased 7 percent in the same period.

Costco, which said it has adjusted its method of accounting for leases entered into over the past 20 years, recorded a cumulative pretax, non-cash charge of $16 million in the second fiscal quarter, which ended Feb. 13.

For the six months, Costco sales also increased 10 percent, coming in at $23.8 billion, up from $21.6 billion the previous period. Comp-store sales for U.S. stores jumped 6 percent, and total company comp-store sales 7 percent.

Net income moved up 29 percent in the first half, reaching $498.6 million, compared with $387 million in the same period a year earlier. Without the impact of the second-quarter tax benefit and the cumulative charge to pre-opening expenses, net income for the first six months would have been $456.5 million, an 18 percent increase year-on-year.