Costco Q2 Net Falls 8.7 Percent

Sales up 2.6 percent, same-club sales rise 1 percent with gasoline, and 4 percent without gas
March 3, 2016David Gill

Costcostorefront_3x2ISSAQUAH, 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.

David GillDavid Gill | Senior Editor
dgill@hfnmag.com

David Gill covers home textiles, small electrics housewares, personal-care products, cleaning products, mattresses, consumer electronics and major appliances. He also reports on retailers and writes about the business and financial side of both vendors and retailers. He has more than 30 years of experience in business journalism, and has worked for other publications and websites that cover consumer products from both the manufacturer and retailer sides. His outside interests include sports (he is a big fan of the New York teams and of British soccer), cooking, movies and theater. He occasionally enjoys a good cigar as well.

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