Costco’s quarterly sales surpass $ 60 billion mark for the first time; charters ocean-going vessels

Costco Wholesale Corp. ended a strong year on an even stronger note, surpassing the $ 60 billion mark in quarterly net sales for the first time in its history. In another first, its annual profit reached $ 5 billion, growing at its fastest rate in more than 20 years,

The member warehouse retailer said its fourth-quarter net sales rose 17.5 percent to $ 61.44 billion, beating estimates of $ 61.41 billion, from $ 53.38 billion l ‘last year. Total comparable store sales increased 15.5%.

Profits totaled $ 1.67 billion, or $ 3.76 per share, in the quarter ended Aug. 29, from $ 3.51 per share a year ago. Analysts had expected earnings of $ 3.58 per share.

For the full year, Costco’s net sales rose 17.7% to $ 192.05 billion, from $ 163.22 billion the year before. This is the strongest year-over-year growth for Costco since its 1992 fiscal year.

Net income rose more than 25% to $ 5.01 billion from $ 4 billion, a record profit total for Costco. This is the strongest annual profit growth since 1998, according to FactSet records, Marketwatch reported.

When calling for company results, the CFO Richard Galanti said that delays at ports, container shortages, COVID-related disruptions, shortages of various components, pressures on labor costs, and shortages of truckers and drivers are all putting pressure on supply chains. supply and inflation. To make sure they get what they need, the company places orders earlier.

“Planning is therefore crucial, and I think our people have done a great job over the past few months,” he told analysts. “In addition, we place certain limits on key items, such as bathroom tissue, roll towels, Kirkland Signature water, SKUs related to high demand cleaning. “

Galanti noted that cContainers, trucks and drivers all impact the timing of deliveries and higher transportation costs. Despite all of these issues, Costco continues to strive to mitigate cost increases in various ways and to maintain and / or mitigate price increases passed on to members, ”he added.

“We have also chartered three ocean-going vessels for the next year to transport containers between Asia and the United States and Canada,” said Galanti. And we have rented several thousand containers to use on these ships.

Each ship can carry 800 to 1,000 containers at a time, and Costco will make about 10 deliveries over the next year, Galanti said.

VSostco currently operates 817 warehouses, including 565 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, three in Spain , and one in Iceland, France and China. Costco also operates e-commerce sites in the United States, Canada, United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

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