The Costly Miss: Revenue Falls Short
Costco Wholesale Corporation (NASDAQ:COST) unveiled its second-quarter financial results post-market close on Thursday.
The announcement brought to light some critical figures:
Underperforming Expectations: Costco’s Q2 revenue totaled $58.44 billion, falling short of the Street’s projection of $59.16 billion according to Benzinga Pro.
Despite the revenue disappointment, the company still managed a 5.7% year-over-year growth, recording a net sales figure of $57.33 billion. Costco attributed this growth to fiscal calendar adjustments.
In a bright spot, Costco exceeded earnings per share expectations, reporting $3.92 against the predicted $3.61.
Comparable sales figures for Q2 were as follows:
– U.S: +4.8%
– Canada: +9.0%
– Other International: +8.2%
– Total Company: +5.8%
– E-commerce: +18.2%
As of the end of Q2, Costco boasted 872 warehouses worldwide, with 603 located in the United States and Puerto Rico.
What Lies Ahead: Costco revealed that its sales for the four-week period ending March 3, 2024, amounted to $18.21 billion, marking a 6.9% increase compared to the previous year.
COST in Motion: Following the earnings report, Costco’s shares experienced a 4.26% decline in after-hours trading, settling at $752.14. This movement comes within a 52-week trading range of $456.42 to $787.05, with recent intraday trading reaching a new 52-week high.
