Costco August, Q4 Net Sales, Comps Rise - Update

(RTTNews) - Membership warehouses operator Costco Wholesale Corp. (COST) Thursday reported growth in both comparable sales and total sales for the month of August as well as for its fourth quarter.

Total comparable sales for the month of August 2014 increased 7 percent, with a 7 percent increase in the U.S., and a 6 percent growth in the International segment.

Excluding negative impacts from gasoline price deflation and foreign exchange, comparable sales for the month grew 8 percent for the total company, with a 7 percent increase in U.S and an 8 percent growth in the international region.

Net sales for four weeks ended August 31 were $8.8 billion, an increase of 10 percent from $8.0 billion in the similar period last year.

For the fourth quarter, total comparable sales increased 6 percent, with a 6 percent growth in each U.S and international regions. Excluding gasoline price and foreign exchange impact, total comparable sales were up 7 percent with a 6 percent increase in U.S and 8 percent rise in international region. For the 16-week fourth quarter, the Company reported net sales of $34.8 billion, an increase of 9 percent from $31.8 billion a year ago.

For fiscal 2014, comparable sales grew 4 percent with an increase of 5 percent in U.S., and 3 percent in international. Excluding gasoline price and foreign exchange impact, total comparable sales were up 6 percent with a 5 percent increase in U.S and 7 percent rise in international region.

For the 52-week year, the company's net sales grew 7 percent to $110.2 billion from the $102.9 billion reported in fiscal year 2013.

Costco ended its year with 663 warehouses in operation, including 468 in the United States and Puerto Rico, 88 in Canada, 33 in Mexico, 26 in the United Kingdom, and 20 in Japan.

The company said it plans to open up to an additional nine new warehouses before the end of calendar year 2014. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

The company plans to release its operating results for the fourth quarter and fiscal year ended August 31, 2014, on October 8.

Costco shares closed Wednesday's trading at $121.35, down $0.21 or 0.17 percent.