Costco 3Q a time of gains
Jennifer Marks -- Home Textiles Today, May 25, 2011
Issaquah, Wash. - Costco Wholesale Corp. enjoyed double-digit net sales increases as well as single-digit gains in comps and net income during its third quarter.
For the 12-week period ended May 8, sales stole the spotlight with a 16% increase to $20.19 billion. Comparable sales were up 6% in the United States, excluding the positive impacts from inflation in gasoline and strengthening foreign currencies. With these effects, U.S. comps were up 10%.
Net income grew by 5.9% to $324 million, or 73 cents per share, compared to $306 million, or 68 cents per share, in 2010's Q3.
Year to date, sales were up 13% to $59.46 billion. Results include sales from the company's 50% owned Mexico joint venture, as Costco began consolidating its Mexico operations beginning with its 2011 fiscal year. Mexico's sales accounted for approximately three percentage points of the increase for the quarter and the year-to-date sales.
Also for the 36 weeks, comps increased 4% in the U.S. division sans inflationary gasoline and strong foreign currencies. Including the positive impacts of those, comps were up 6%.
Net income year to date was up by 11.5% to $984 million, or $2.22 per diluted share, compared to $871 million, or $1.95 per diluted share, last year. Costco said the consolidation of the Mexico joint venture had no impact on net income or earnings per share attributable to the company.
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