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Industry NewsCostco’s quarterly sales slightly ahead of estimates

Costco’s quarterly sales slightly ahead of estimates


Costco Wholesale Corp.’s latest quarterly sales results were slightly ahead of analyst projections. Growth in online business was the slowest it has been in a year and gross margins fell thanks to rising costs and higher investments.

Costco has been making significant investments in e-commerce and delivery operations, while offering same-day and two-day grocery delivery with Instacart, Reuters says.

“We’re not only investing in price, we’re investing in infrastructure,” said CEO Richard Galanti on a conference call with analysts, adding the retailer would be “doubling down” its spending on IT and fulfillment centres.

Comparable online sales for the quarter grew 26.2 percent, the slowest in a year as the company faced competition from Amazon’s Whole Foods division. Adjusted same-store sales rose 7.2 per cent, slightly ahead of the projected 6.4 per cent increase.

Costco comparable sales for the 16-week fourth quarter, and the 52-week fiscal year, ended September 2, 2018, were as follows:


Comparable sales for these periods excluding the impacts from changes in gasoline prices and foreign exchange were as follows:


Read the Reuters story here


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