Costco Wholesale's fiscal fourth-quarter earnings demonstrated a robust increase, exceeding analysts' forecasts even as the warehouse chain encountered challenges with revenue that fell below Wall Street estimates. For the 16 weeks ending on September 1, the company's per-share earnings surged to $5.29, up from $4.86 in the previous year, surpassing the consensus estimate of $5.06 as reported by Capital IQ.
During this period, Costco's revenue climbed to an impressive $79.7 billion, a rise from $78.94 billion a year earlier. However, this figure still trailed behind the market's expectations, which projected revenue at $80.03 billion. Notably, comparable sales experienced a commendable uplift, rising by 5.4% over the 16-week timeframe.
Breaking this down further, sales in the US saw a 5.3% increase, while Canadian sales were slightly more robust with a 5.5% rise. Additionally, the company reported significant growth in its e-commerce sector, with sales advancing nearly 19%. On the cost front, merchandise expenditures saw a slight increase, amounting to $69.59 billion compared to $69.22 billion a year prior, reflecting the ongoing trends in consumer behavior and pricing pressures.
In a nutshell, while Costco's earnings reflect a strong performance in the fiscal fourth quarter, the shortfall in expected revenue underscores the competitive retail landscape and the ever-evolving market dynamics that the company must navigate moving forward..