Costco Wholesale May Comps Flat, Sales Up 2% - Update

(RTTNews) - Membership warehouses operator Costco Wholesale Corp. (COST) reported Wednesday net sales for the month May that grew 2 percent from a year ago. However, comparable store sales for the month remained flat, while it grew 6 percent after excluding the negative impacts from gasoline price deflation and foreign exchange.

The Issaquah, Washington-based company reported net sales of $8.98 billion for the four weeks ended May 31, 2015, up 2 percent from $8.78 billion in the same month last year.

Total company comparable sales for the month of May was flat, with 2 percent growth in the U.S., while International comparable sales declined 4 percent.

Excluding the negative impacts from gasoline price deflation and foreign exchange, total company comparable sales for the month was up 6 percent, with 5 percent growth in the U.S., and 8 percent growth outside the U.S.

The company also reported net sales of $85.31 billion for the thirty-nine weeks ended May 31, 2015, up 4 percent from $81.99 billion in the same period last year.

Total company comparable sales for the period was up 2 percent, with 4 percent growth in the U.S., while International comparable sales declined 2 percent.

Excluding the negative impacts from gasoline price deflation and foreign exchange, total company comparable sales for the period grew 7 percent, with 7 percent growth both in the U.S. and outside the U.S.

Costco currently operates 674 warehouses, including 475 in the U.S. and Puerto Rico, 89 in Canada, 35 in Mexico, 26 in the U.K., 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain.

The company said it plans to open up to an additional 14 new warehouses (including one relocation to a larger and better-located facility) prior to the end of its fiscal year on August 30, 2015.

COST closed Wednesday's regular trading session at $142.13, up $0.73 or 0.52% on a volume of 1.86 million shares.