Costco Q2 Net Falls 8.7 Percent
Posted on March 3, 2016 by
ISSAQUAH, Wash.-Costco posted second quarter net income of $546 million, down 8.7 percent from the second quarter of last year, which included a one-time tax benefit of $57 million related to a special cash dividend received by the retailer’s 401(k) participants.
Net sales in the quarter, which ended on Feb. 14, edged up 2.6 percent to $27.6 billion, and included increases in same-club sales of 1 percent including gasoline sales, and 4 percent when gas is factored out. Gross margin rose 17 basis points to 11.2 percent. Selling, general and administrative expenses increased by 6.1 percent in dollars and 34 basis points as a percentage of sales, to 10.3 percent.
Costco currently operates 698 warehouse clubs, including 488 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 24 in Japan, 12 in Korea, 11 in Taiwan, eight in Australia and two in Spain. Costco also operates e-commerce web sites here and in Canada, the United Kingdom, Mexico, Korea and Taiwan.
The company ranked fifth among retailers of home furnishings in last year’s HFN top 50 list of home furnishings retailers, with 2014 home furnishings sales of $5.4 billion.