Warehouse club operator Costco has reported solid Q2 sales.
For the three months ended 17 February 2019, sales grew 7.3% to $34.6 billion, while comparable sales increases adjusted for the effects of fuel price changes and foreign exchange were 7.2% in the US and 4.8% overseas.
Operating profit for the quarter came in at $889 million, an increase of 27% compared to the same year-ago period.
In the earnings call, the company said both membership fees and renewal rates rose slightly, with total cardholders at the end of the quarter standing at 96.3 million.
“During the quarter, we had one new opening in Coral Springs (FL) and we also relocated in Miami. Our paid executive membership base stood at 20 million at the end of Q2, and this includes the recent introduction of the executive membership in Korea, which is our fifth country offering this service,” said Costco CFO Richard Galanti.
Costco currently operates 770 warehouses, including 535 in the US and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the UK, 26 in Japan, 15 in Korea, 13 in Taiwan, ten in Australia, two in Spain, and one each in Iceland and France. Costco also operates e-commerce sites in the US, Canada, the UK, Mexico, Korea, and Taiwan.
