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

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