By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Issaquah, Wash. – A trying holiday season, unfavorable foreign exchange rates and a prior-year tax benefit conspired to cut Costco’s second quarter profits by 15.4 percent.
Net income was $463 million for the three months, ended Feb. 16, on net sales of $25.8 billion, a 6 percent increase, while U.S. comp-store sales rose 5 percent, excluding the impact of lower gasoline prices.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.
Issaquah, Wash. – Costco said CE comp sales fell by the mid- to high-single digits in January amid gains in other product categories.
Results for the four-week period, ended Feb. 2, encompassed the Super Bowl TV sales cycle, and continued a nearly year-long trend for Costco’s CE business.
In a research note, Janney Montgomery Scott retail analyst David Strasser attributed the softness to an “extremely competitive and promotional” CE marketplace.
Issaquah, Wash. – Costco’s U.S. comp sales edged up 3 percent in November, blunted in part by a downturn in CE.
The No. 1 warehouse club said CE comps were negative for the month, continuing a recent reversal in what had been steady category growth through most of this year and last.
Total revenue rose 5 percent in November, to $8.9 billion, and also increased 5 percent for the three months ended Dec. 1, to $24.5 billion. U.S. comps for the quarter were up 4 percent excluding gasoline.
With all the discussion about stores opening on Thanksgiving, this year I decided to visit two of the stores that I’ve gone to on Black Friday for around a decade. Both traditionally have been closed on the holiday, and both were closed again this year: P.C. Richard & Son in Astoria, N.Y., and the Costco in Long Island City, N.Y.
My observations are completely unscientific, but they are a snapshot of that day and how it compared with my visits to those same stores on Black Fridays over the years.
Overland Park, Kan. – Sprint is expanding its presence in the Costco chain to 100 more stores, joining 106 Costco stores that began last fall to sell Sprint products and services.
In the stores, Sprint-network handsets are sold in wireless kiosks and dedicated retail spaces managed by Seattle-based Wireless Advocates, which provides similar services for Staples and the Army and Air Force Exchange Service. Wireless Advocates supplies Costco with salespeople, products and services.
Issaquah, Wash. — Costco reported negative comp sales for consumer electronics in August.
The results mirror reports by national and independent retailers of tepid CE sales this summer, and a sluggish back-to-school season.
In contrast, the No. 1 warehouse club said net sales rose 7 percent in August, to nearly $8 billion, while U.S. comp sales increased 5 percent excluding gasoline.
Issaquah, Wash. – Costco said total sales rose 7 percent last month to $7.9 billion with little contribution from CE.
The No. 1 wholesale club said CE comp sales fell in July, led lower by “softer sales” of TVs, cameras and computers.
Total U.S. comps rose 3 percent excluding gasoline sales, traffic rose 4 percent, and average transaction size was flat.
Issaquah, Wash. — Strength in CE contributed to a 7 percent increase in Costco’s April sales.
Net sales were just shy of $8 billion for the four weeks, ended May 5, and U.S. comp sales rose 4 percent excluding gasoline.
The No. 1 warehouse club cited consumer electronics as one the “better performing” categories within its hardlines sector.
Issaquah, Wash. — Costco cited CE among its better-performing hardlines categories in March.
Comp-store sales of hardlines rose by the mid-single digits for the five weeks, ended April 7, the retailer reported.
Janney Montgomery Scott analyst David Strasser noted that CE’s resurgence at Costco began last May, differentiating the warehouse club from industry trends.
Costco’s total U.S. comp-store sales increased 6 percent during the period, excluding the impact of lower gasoline prices, and net March sales rose 7 percent to $9.7 billion.
Issaquah, Wash. — Double-digit growth in membership fees and a one-time tax benefit helped push Costco’s second-quarter earnings up 38.8 percent to $547 million.
Net sales for the three months, ended Feb. 17, rose 8 percent to $24.3 billion and comparable sales at U.S. stores increased 5 percent, excluding the positive impact of higher gasoline prices.
Membership-fee income rose 15 percent to $528 million, and the company enjoyed a $62 million tax benefit related to a 401(k) plan contribution.