Costco Reports Stronger Sales as U.S. Economy Gains Steam
May 27 2021 - 5:10PM
Dow Jones News
By Micah Maidenberg
Costco Wholesale Corp. said revenue increased during its latest
quarter as the U.S. economy began to rev up with more people
getting vaccinated against Covid 19.
Costco on Thursday said it generated $45.28 billion in revenue
for its quarter that ended May 9, up almost 22% from the same
period last year. Analysts had predicted the club-store chain would
report $43.65 billion in revenue.
Consumer spending has climbed this spring, with demand supported
by households that saved funds during pandemic-related lockdowns
and consumers who received stimulus checks from the federal
government.
Domestic spending at shops, restaurants and online rose almost
11% to roughly $620 billion in March from February, and stayed at
that level last month, according to the Commerce Department. Some
retailers have faced challenges keeping in-demand items on store
shelves amid elevated demand and snarls across global supply
chains. Costco earlier said it has faced issues getting products
like televisions and computers amid a global shortfall in
semiconductors.
Costco's comparable sales, or those from warehouse stores or
websites operating for more than one year, were up 15% in the
latest quarter after excluding changes in gasoline prices and
currency fluctuations.
The Issaquah, Wash.-based company reported a profit of $1.22
billion for the quarter. That was up from $838 million during the
year-earlier quarter and beat the $1.01 billion in net income that
analysts were looking for, according to FactSet. Earnings rose to
$2.75 a share from $1.89 a share.
Earlier this month, Costco executives said that vaccinated
shoppers and employees would no longer need to wear masks, though
the company recommended that workers continue to do so.
Other retailers, including Walmart Inc., also eased mask
requirements after federal health officials relaxed guidelines
about face coverings for Americans who received vaccines.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 27, 2021 17:03 ET (21:03 GMT)
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