Net sales

Costco reports 16.7% increase in net sales for the first quarter of FY22

Costco operates 828 warehouses around the world. Credit: Open Grid Scheduler / Flickr.

US-based retail company Costco Wholesale has released its results for the first quarter (Q1) of fiscal 2022 (FY22), which have exceeded analysts’ expectations for both earnings and revenue.

For the three months ended Nov. 21, the company’s net sales rose 16.7 percent to $ 49.42 billion, from $ 42.35 billion in the same period last year.

Costco’s total comparable sales increased 15.0% and its adjusted comparable sales increased 9.8%.

The company’s e-commerce sales were up 14.3% from the first quarter of 2021.

Costco generated net income of $ 1.32 billion, or $ 2.98 for a diluted share, during the 12-week period. That was an increase of $ 1.16 billion, or $ 2.62, on a diluted share, a year earlier.

The company also provided a tax benefit of $ 91 million, or $ 0.21 for a diluted share, related to stock-based compensation. Its tax benefits for last year were $ 145 million, or $ 0.33 per diluted share.

Costco’s sales results for the retail month of November rose 15.7% to $ 18.13 billion, from $ 15.67 billion in the same period last year.

The company reported net sales of $ 54.10 billion for the 13 weeks leading up to November 28.

Based in Issaquah, Washington, Costco operates 828 warehouses, including 572 in the United States and Puerto Rico and 105 in Canada.

In fiscal year 22, the company recorded a net increase of 20 warehouse units.

In the first quarter, Costco opened nine units, one of which was the move of another unit. The company plans to open 23 units during the rest of the year.

Costco pegged its full-year capital spending at around $ 4 billion, an increase of more than $ 400 million from last year’s figure.

In addition to its physical stores, the company operates online in the United States, Canada, United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.

In July, Costco reached a settlement agreement with US jewelry company Tiffany, ending a long-standing trademark infringement and infringement lawsuit between the two companies.