Costco Wholesale Corporation (COST)
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Apr 24, 2026, 2:45 PM EDT - Market open
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Monthly Sales Update May 2020

Jun 3, 2020

Speaker 1

Hello, and thank you for calling Costco Wholesale Corporation. I'm David Sherwood, AVP of Finance and Investor Relations, and I will review our sales results for the 4 week retail month of May, which started on Monday, May 4 and ended on Sunday, May 31. This period is compared to the 4 weeks that began on Monday, May 6 and ended on Sunday, June 2, 2019. This call will include forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause actual events, results and or performance to differ materially from those indicated by such statements.

The risks and uncertainties include, but are not limited to, those outlined in today's call and sales release as well as other risks identified from time to time in the company's public statements and reports filed with the SEC. Forward looking statements speak only as of the date they are made, and the company does not undertake to update them except as required by law. As reported in our release, net sales for the 4 week month of May came in at 12,550,000,000 dollars an increase of 7.5 percent from $11,670,000,000 last year. Comparable sales were as follows. On a reported basis, in the U.

S, the 4 weeks was a 5.5 percent for the 39 weeks, 6.7 percent Canada, the 4 weeks was a negative 0.9 percent, 39 weeks, 2.9%. Other international, the 4 weeks was at 12.0%, 39 weeks, 6.3%. And Toll Company, the 4 weeks was a 5.4%, 39 weeks, 6.1%. For e commerce, the 4 weeks was 106 0.2% and the 39 weeks, 37.5%. Comparable sales, excluding the impacts from change in gas prices and foreign exchange were as follows.

In the U. S, the 4 weeks was a 9.2%, 39 weeks, 7.4%. In Canada, the 4 weeks is a 4.9%, 30 9 weeks, 5.1%. International, the 4 weeks is a 17.9 percent, 39 weeks, 8.7 percent. Total company, the 4 weeks is a 9.7%, 39 weeks, 7.3%.

For e commerce, the 4 weeks was 108.1% and for the 39 weeks, we're at 38.1%. The COVID-nineteen pandemic impacted our sales and comp traffic in our warehouses for the month of May. Non Foods rebounded in May compared to recent months, and the strength in Foods and Sundries and Fresh continued. We started May with most of our optical hearing aid and photo departments closed, but added back service progressively over the month. We finished with approximately 90% back in operation by month end, but even after opening, sales volumes are still being negatively impacted by COVID-nineteen.

Food court service continues to be limited to carryout only, and of course, travel was significantly down year over year. Our comp traffic or frequency for May was down 7.9% worldwide and 4.8% in the U. S. The average transaction was 14.4%, which includes the negative impacts from foreign exchange and gas deflation. In terms of regional and merchandising categories, the general highlights were as follows: the U.

S. Regions with the strongest results were the Southeast, Texas and Northeast other international and local currencies, we saw the strongest results in Japan, U. K. And Taiwan Foreign currencies year over year relative to the U. S.

Dollar impacted May comp sales as follows: Canada negatively by approximately 3 70 basis other international, negatively by approximately 450 basis points and total company, negatively by approximately 110 basis points. Moving to the merchandise highlights. The following comparable sales results by category for the month exclude the impact of foreign exchange. Food and sundries were positive high teens. Departments with the strongest results were frozen food, liquor and foods.

Fresh foods were up low 20s. Better performing departments included meat and produce. Hard lines were positive low 20s. Better performing departments included major appliances, which includes consumer electronics, sporting goods and hardware. Softlines were positive low single digits.

Sales were soft in luggage, jewelry and apparel, but improved versus April. Ancillary businesses were down high 30s. This was primarily as a result of lower gasoline sales and closures as we continue to reintroduce our optical hearing aid and photo businesses. Gasoline price deflation negatively impacted total reported comp sales by a little more than 3%. The average selling price was lower year over year at $2.06 per gallon compared to $3.13 per gallon last year.

In addition, we continue to experience lower volume year over year, but it did improve relative to April. Looking ahead, the June reporting period will include the 5 weeks beginning June 1 and ending July 5 compared to the 5 weeks beginning June 3 and ending July 7, 2019. June sales will be announced Wednesday, July 8 at 1:15 p. M. Pacific Time.

Costco currently operates 787 warehouses, including 547 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 12 in Australia, 2 in Spain and 1 each in Iceland, France and China. Costco also operates e commerce websites in the United States, Canada, U. K, Mexico, Korea, Taiwan, Japan and Australia. If you have any questions regarding our May sales results or any other Investor Relations questions, please do not hesitate to call Bob Nelson at 425-313-8255, Josh Damon at 425-313 8254, or myself, David Sherwood at 425-313-8239. This recording will be available until 5 p.

M. Pacific Time, Wednesday, June 10th. Thanks for calling. Have a great day.

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