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 2019

Jun 5, 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 May, which started on Monday, May 6 and ended on Sunday, June 2. This period is compared to the 4 weeks beginning on Monday, May 7 and ending on Sunday, June 3, 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 May came in at $11,670,000,000 an increase of 5.9 percent from $11,020,000,000 last year. For the 39 weeks ended June 2, net sales came in at $111,560,000,000 an increase of 8% from $103,260,000,000 last year. Comparable sales were as follows.

On a reported basis, in the U. S, the 4 weeks was a 5.7%, 30 9 weeks, 8.3% Canada, the 4 weeks was a negative 0.3%, 39 weeks, 0.9 percent. Other international, 4 weeks was a 0.9%, 39 weeks, 2.0 percent total company, 4 weeks, 4.2 percent 39 weeks, 6.3 percent. E Commerce, the 4 weeks was at 20.2%, 39 weeks, 24.2%. Comparable sales excluding impacts from changes in gasoline prices and foreign exchange and revenue recognition were as follows.

In the U. S, the 4 weeks was at 4.4% 39 weeks, 6.7% Canada, 4 weeks, 3.9%, 39 weeks, 5.3% other international, 4.8% and 39 weeks, 5.7%. Total company, the 4 weeks is at 4.3%, 39 weeks, 6.3%. E commerce of 4 weeks is at 19.9%, 39 weeks 23.5%. In terms of regional and merchandising categories, the general highlights were as follows.

The U. S. Region with the strongest results were the Midwest, San Diego and Los Angeles. Internationally, in local currencies, we saw the strongest results in Spain, Mexico and Taiwan. Foreign currencies year over year relative to the U.

S. Dollar hurt May comp sales as follows: Canada by approximately 4.50 basis points other international by approximately 380 basis points and total company by approximately 110 basis points. The impact from revenue recognition standard ASC 606 was a benefit of approximately 110 basis points for the U. S. And 90 basis points for total company.

The negative impact of cannibalization was approximately 50 basis points in the U. S, 80 basis points in Canada, 170 basis points in other international and 75 basis points for the total company. 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 mid single digits.

Departments with the strongest results were candy, sundries and liquor. Hard lines were positive low to mid single digits. Better performing departments were toys and seasonal, majors and haba. Softlines were up mid single digits, better performing departments included special order kiosks, home furnishings and domestics. And finally, fresh foods were up low to mid single digits, better performing departments included service deli and meat.

Within the ancillary businesses, hearing aids, gasoline and optical had the best comp sales increases. Gasoline price inflation positively impacted total reported comp sales by approximately 10 basis points. The average selling price was slightly higher year over year at $3.16 per gallon this year compared to $3.13 a year earlier. Our comp traffic or frequency for May was up 2.7% worldwide and 2.3% in the U. S.

The average transaction was up 1.5% for the month, which includes the negative impact from foreign exchange and positive impacts from gasoline and beginning June 3 and ending July 7 compared to the 5 weeks beginning June 4, ending July 8, 2018. June sales will be released at 1:15 Pacific Time on July 10. Costco currently operates 773 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 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 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 12.

Thanks for calling Costco and have a great day.

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