Costco Wholesale Corporation (COST)
NASDAQ: COST · Real-Time Price · USD
895.31
+1.38 (0.15%)
At close: Sep 18, 2026, 4:00 PM EDT
896.70
+1.39 (0.16%)
After-hours: Sep 18, 2026, 7:58 PM EDT
← View all transcripts

Monthly Sales Update March 2020

Apr 8, 2020

David Sherwood
AVP of Finance and Investor Relations, Costco Wholesale

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 five-week retail month of March, which started on Monday, March 2nd, and ended on Sunday, April 5th. This period is compared to the five weeks beginning on Monday, March 4th, and ending on Sunday, April 7th, 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, the company does not undertake to update them except as required by law. As reported in our release, net sales for the five-week month of March came in at $15.49 billion, an increase of 11.7% from $13.87 billion last year. Comparable sales were as follows. On a reported basis, in the U.S., the five weeks was a 10.7%. 31 weeks, 8.0%. For Canada, the five weeks was a 1.2%. 31 weeks, 5.4%. Other international, the five weeks was a 12.2%. 31 weeks, 7.0%.

Total company, five weeks, 9.6%. 31 weeks, 7.5%. E-commerce for the five weeks was a 48.3%. 31 weeks, 22.2%. Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows. In the U.S., the five weeks was a 12.1%. 31 weeks, 7.9%. Canada, the five weeks was a 7.2%.

31 weeks, 6.4%. Other international, the five weeks was a 19.2%. 31 weeks, 8.4%. In total company, five weeks, 12.3%. 31 weeks, 7.8%. E-commerce for the five weeks was a 49.8%. 31 weeks was a 22.4%. March sales were significantly impacted by the COVID-19 pandemic. The initial response to the pandemic led to significant sales and traffic increases in our warehouses, as we disclosed last month concerning sales in the last week of February. Those increases extended midway through the March reporting period. Around that time, in part in response to government actions, we began implementing operational changes. One example is limiting the number of individuals allowed in our warehouses at any given time, depending on local requirements.

In addition, we have changed warehouse hours, temporarily closed some segments of our business, such as Optical, hearing aid, and Mini Lab, limited service at Food Courts, and in some locations, ceased sales of certain merchandise deemed non-essential by regulators. These developments slowed sales as compared to the first half of March. In terms of regional and merchandising categories, the general highlights were as follows. In the U.S. regions with the strongest results were the Texas, Northeast, and Midwest. Other international and local currencies, we saw the strongest results in Taiwan, U.K., and Australia. Foreign currencies year-over-year relative to the U.S. dollar impacted March comp sales as follows. Canada, negatively by approximately negative 410 basis points. Other international, negatively by approximately 620 basis points. Total company, negative by approximately 140 basis points.

The negative impact of cannibalization was approximately 10 basis points in the U.S., 120 basis points in other international, and 20 basis points for total company. Moving in merchandise highlights, the following comparable sales results by category for the month exclude the impact of foreign exchange. Food and sundries were positive mid-30s. Departments with the strongest results were food, frozen food, and sundries. Fresh foods were up mid-20s. Better-performing departments included meat and produce. Hardlines were negative low single digits. Underperforming departments were tires, sporting goods, and lawn and garden. Softlines were down mid-20s. Underperforming departments included luggage, jewelry, and apparel. Within the ancillary businesses, pharmacy and gas had the best comp sales. Gasoline price deflation negatively impacted total reported comp sales by approximately 130 basis points. The average selling price was lower year-over-year at $2.38 per gallon this year, compared to $2.78 a year earlier.

Our comp traffic or frequency for March was up 3.7% worldwide and 5.3% in the U.S. The average transaction was up 5.7% for the month, which includes the impacts from foreign exchange and gas deflation. Looking ahead, the April reporting period will include the four weeks beginning April 6th and ending May 3rd, compared to the four weeks beginning April 8th, ending May 5th, 2019. April sales will be announced Wednesday, May 6th, at 1:15 P.M. Pacific Time. Costco currently operates 787 warehouses, including 547 in the U.S. and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the U.K., 26 in Japan, 16 in Korea, 13 in Taiwan, 12 in Australia, two in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce websites in the U.S., Canada, U.K., Mexico, Korea, Taiwan, Japan, and Australia.

If you have any questions regarding our March sales results or any other investor relations questions, please do not hesitate to call Bob Nelson at [425] 313-8255, Josh Dahmen at [425] 313-8254, or myself, David Sherwood, at [425] 313-8239. This recording will be available until 5:00 PM Pacific Time, Wednesday, April 15th. Thanks for calling, and have a great day.