This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Costco's 4Q Results Top Wall Street Expectations

Stocks in this article: BJ COST

ISSAQUAH, Wash. (AP) â¿¿ Costco is drawing more shoppers and signing up more new members, helping the wholesale club operator's fiscal fourth-quarter net income and revenue climb. Its performance beat Wall Street's expectations, and its shares hit an all-time high Wednesday.

Consumers have been drawn to stores like Costco, BJ's Wholesale Club and Sam's Club because they feel like they are getting bargains by purchasing items in bulk. Memberships at such stores have continued to rise in recent years as shoppers worried about the economy and high unemployment look for ways to save money.

For the period ended Sept. 2, Costco Wholesale Corp. said Wednesday that it earned $609 million, or $1.39 per share. That compares with $478 million, or $1.08 per share, a year earlier.

There was an extra week in the current quarter.

Analysts predicted earnings of $1.31 per share, according to a FactSet survey.

Costco shares climbed $2.90, or 2.9 percent, to $102.54 in afternoon trading. The stock reached $104.43 earlier in the session, a new all-time high.

Total revenue increased 14 percent to $32.22 billion from $28.18 billion as sales improved and the Issaquah, Wash., company made more money from membership fees. Wall Street expected revenue of $31.59 billion.

Membership fee income totaled $694 million in the quarter as renewal rates came in at approximately 90 percent. New memberships climbed 2 percent from a year ago. The company said that there were also more shoppers visiting its clubs.

Sales of softlines, which can include items like clothing and footwear, posted a high single-digit percentage increase, with small electric appliances among the strongest within the category. Sales of food and small items like toiletries rose by a mid-single-digit percentage, as did hardlines, which can include hardware and lawn and garden products.

Online sales climbed 14 percent.

Revenue at stores open at least a year, a key gauge of a retailer's health, climbed 5 percent. The figure rose 6 percent in the U.S. and 2 percent internationally. It is a key performance indicator for retailers because it excludes results from stores recently opened or closed.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs