Costco Wholesale Corporation (COST)
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Apr 24, 2026, 2:45 PM EDT - Market open
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Monthly Sales Update July 2019

Aug 7, 2019

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 July, which started on Monday, July 8 and ended on Sunday, August 4. This period is compared to the 4 weeks beginning on Monday, July 9 and ending on Sunday, August 5, 2018. 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 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. Now with regards to sales. As reported in our release, net sales for the 4 week month of July came in at $11,430,000,000 an increase of 7.9 percent from $10,590,000,000 last year. For the 48 weeks ended August 4, net sales came in at $137,560,000,000 an increase of 8.0 percent from $127,400,000,000 last year.

Comparable sales were as follows. On a reported basis, in the U. S, the 4 weeks is a 6.5% 48 weeks, 7.9 percent. Canada, the 4 weeks is a 4.8%, 48 weeks, 1.5%. Other international, 4 weeks is a 1.3%, 48 weeks 2.0%.

Total company, the 4 weeks is at 5.6%, 48 weeks, 6.2%. E commerce, the 4 weeks is at 21.3%, 48 weeks, 23.1 percent. Comparable sales, excluding the impacts from changes in gasoline prices, foreign exchange and revenue recognition were as follows: in U. S, the 4 weeks was a 5.3%, 48 weeks 6.4% Canada, the 4 weeks was a 5.4%, 48 weeks, 5.2%. Other international, 4 weeks was a 4.0 percent, 48 weeks, 5.6 percent.

Total company, the 4 weeks was a 5.1%, 48 weeks 6.1 percent. E Commerce for 4 weeks was a 23.8% and the 48 weeks was a 23.2%. In terms of regional and merchandise categories, the general highlights were as follows: U. S. Regions with the strongest results were the Midwest, San Diego and L.

A. Other international and local currencies, we saw the strongest results in Taiwan, Japan and Mexico. Foreign currencies year over year relative to the U. S. Dollar heard July comp sales as follows: Canada by approximately 10 basis points other international by approximately 240 basis points and total company by approximately 30 basis points.

The negative impact of cannibalization was approximately 50 basis points in the U. S, 110 basis points in Canada, 150 basis points in other international and 70 basis points for the tour company. Moving to merchandise highlights. The following comparable sales results by category for the month exclude the impact of foreign exchange. Food and sundries were positive mid single digits.

Departments with the strongest results were candy, liquor and sundries. Hardlines were positive mid single digits. Better performing departments were garden, toys and seasonal and majors. Softlines were up low single digits. Better performing departments included kiosks, housewares and small appliances.

Fresh foods were also up mid single digits. Better performing departments included service deli and produce. Defending ancillary businesses, hearing aids, optical and gas had the best comp sales increases. Gasoline price deflation negatively impacted total reported comp sales by approximately 50 basis points. The average selling price was lower year over year at $2.93 per gallon this year compared to $3.03 a year earlier.

Our comp traffic or frequency for the for July was up 3.5% worldwide and in the U. S. The average transaction was up 2.0% for the month, which includes the negative impacts from foreign exchange and gasoline deflation and the positive impact from revenue recognition. Looking ahead, the August reporting period will include the 4 weeks beginning August 5 and ending September 1 compared to the 4 weeks beginning August 6, ending September 2, 2018. August sales will be released at 1:15 Pacific Time on September 5.

Costco currently operates 778 warehouses, including 540 in the U. S. And Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, 2 in Spain and 1 each in Iceland and France. Costco also operates e commerce websites in the U. S, Canada, U.

K, Mexico, Korea and Taiwan. If you have any questions regarding our July 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 pm Pacific Time, Wednesday, August 14. Thanks for calling, and have a great day.

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