Costco’s latest Q3 report is reporting comparable sales growth for Canada.
North of the border, where the company operates 108 warehouses, Costco’s Q3 report shows sales growth of 7.7% for Canada. Globally, Costco’s net sales for the quarter, which ended May 12, spiked 9.1% to USD $57.39 billion, from USD $52.60 billion last year. Net sales for the first 36 weeks increased 7% to $171.44 billion, from $160.28 billion the year prior. Ecomm comp sales spiked nearly 21% for the quarter.
Costco CEO Ron Vachris says merchandise and value are key digital strengths, adding that he sees “great upside potential” for its retail media network, especially with aspects like personalization. Teams have a “great roadmap” for better fulfillment and quicker delivery, Vachris notes.
Costco is also reporting that it is expanding its delivery relationship with Uber to now include Canada and 17 U.S. states.
Membership fee income spiked 7.6% year over year, while membership renewal rates hit 93% in Canada, up slightly from Q2.
The company has 74.5 million paid members and it boasts 34.5 million executive memberships, which represent 46% of paid members.
In Thursday’s earnings call, executive VP and CFO, Gary Millerchip, said that average ticket was up 0.5% worldwide, with people buying more discretionary items like toys, tires, health and beauty, and lawn and garden, with bakery sales “showing great momentum.”
Millerchip also said Costco lowered prices on a few key Kirkland private label items, and released a new signature Kirkland walking shoe and facial wipes, both of which are doing well.
Costco says it is making enhancements to app and website and is “excited about traction,” with app downloads up more than 30%, to 35 million in total, while Costco site traffic is up 16%.
Selling, general and administrative (SG&A) expense rate was lower year over year, 8.96%, compared with 9.11%.