Costco Net Jumps 30 Percent in Q1

ISSAQUAH, Wash.-Increased sales and a watchful eye on expenses helped boost Costco's bottom line by 30 percent in its fiscal first quarter, to $416 million.

Net sales in the quarter, which ended on Nov. 25, rose 9.6 percent to $23.2 billion. The sales pickup included a gain in same-club sales of 7 percent, which included a 7 percent increase for its U.S. clubs and a 9 percent rise for its international locations.

Selling, general and administrative expenses, while rising 8.8 percent in dollars, shed seven basis points as a percentage of sales to 10.1 percent. Gross margin rose six basis points to finish the quarter at 10.7 percent.

In its statement on the first-quarter results, Costco said it plans to open one more club before the end of calendar 2012, in Gwangmyeong, South Korea. The company's club count currently stands at 621.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.