Costco Q3 Net Rises 18.9 Percent

[caption id="attachment_13285" align="alignleft" width="225"]        [/caption]

ISSAQUAH, Wash.-A sales gain and a slight tick up in margins fueled Costco to an 18.9 percent increase in net income in its third quarter, to $459 million.

Net sales rose 7.8 percent to $23.6 billion, including a same-store sales gain of 5 percent for the corporation as a whole. Same-store sales in Costco's U.S. clubs were up 6 percent, while for the international clubs, same-store sales increased 4 percent.

In its statement on the quarter, which ended on May 12, Costco said gasoline sales actually had a negative impact on same-store sales. Factoring out gas, same-store sales for the U.S. and international clubs, and for the company as a whole, increased 7 percent.

Gross margin edged up 12 basis points to 10.7 percent. Selling, general and administrative expenses were up 7.5 percent in dollars but down three basis points as a percentage of sales, to 9.8 percent.

Costco also said it plans to open up to an additional nine warehouse clubs by the end of its fiscal year, Sept. 1. Currently, it operates 627 clubs throughout the world.

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

  • Patti Carpenter Talks Color and its Importance in the Home

    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 August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.