Costco Wholesale reports Q2 earnings, Canada comp sales up 9.2%

Costco Wholesale Corp. reported solid increases in net sales and net income. Comparable sales for Canada increased 9.2 per cent, compared to U.S. sales, which rose 4.3 per cent, and the international division’s sales, which rose 8.6 per cent.

Net sales increased 5.7 per cent to $57.33 billion in the second quarter of fiscal 2024, while the net income climbed to $1.743 billion. Membership fees grew to $1.111 billion, and e-commerce sales surged with an 18.4 percent increase.

According to financial media reports, sales fell about four per cent following the company’s earnings reporting because Costco missed industry analyst revenue expectations for the critical holiday quarter, despite reporting year-over-year sales growth and strong e-commerce growth.

Sales of food and sundries, a category that includes snack foods and beverages, were up by mid-single digits in the quarter. Fresh foods were up high single digits, and non-foods were up mid-single digits.

In the second quarter, Costco opened four new clubs, including three in the U.S. and one in Shenzhen, China.

In Canada, Costco plans to add a new store in Oakville, Ontario, bringing the number of locations in the country to 109.