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

May 8, 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 April, which started on Monday, April 8 and ended on Sunday, May 5. This period is compared to the 4 weeks beginning on Monday, April 9 and ending on Sunday, May 6, 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 April came in at $11,600,000,000 an increase of 7.3 percent from $10,810,000,000 last year. For the 35 weeks ended May 5, net sales came in at $99,89,000,000 an increase of 8.3% from $92,240,000,000 last year.

This year's April retail month had 1 less shopping day than last year due to the calendar shift of Easter. This negatively impacted total and comparable sales by approximately 1.5% to 2%. Comparable sales for the 9 weeks of March April combined will be provided in a moment, eliminating the impact of the Easter shift. Comparable sales were as follows. On a reported basis, the U.

S. Was at 7.7% for the 4 weeks, 7.3% for 9 weeks, 8.6% for 35 weeks. In Canada, it was a negative 1.9% for the 4 weeks, a positive 1.1% for 9 weeks and a positive 1.1% for 35 weeks. Other international, 0.9% for the 4 weeks, 1.3% for 9 weeks, 2.1% for 35 weeks. Total company, 5.4% for 4 weeks, 5.6% for 9 weeks, 6.6% for 35 weeks.

E Commerce, 23.6% for 4 weeks, 22.0 percent for 9 weeks, 25.2% for 35 weeks. Comparable sales excluding impacts from changes in gasoline prices, foreign exchange and revenue recognition were as follows: In the U. S, it's a 5.6% for 4 weeks, 5.6% for the 9 weeks, 7.0% for 3 to 5 weeks Canada, 2.3% for the 4 weeks, 4.6% for 9 weeks, 5.4% for 35 weeks. Other international, 6.0 percent for 4 weeks, 6.7% for 9 weeks, 5.8% for 35 weeks. Total company, 5.2% for 4 weeks, 5.6% for 9 weeks, 6.5% for 35 weeks.

E Commerce, 19.9 percent for 4 weeks, 20.0 percent for 9 weeks and 23.8 percent for 35 weeks. For e comm, the difference between the reported and the without gas FX and rev rec comps was primarily a result of revenue recognition in April. In terms of regional and merchandising categories, the general highlights were as follows. In the U. S, the regions with the strongest results were the Midwest, San Diego and LA.

Internationally, in local currencies, we saw the strongest results in Japan, Mexico, Spain and Taiwan. Foreign currencies year over year relative to the U. S. Dollar hurt April comp sales as follows: Canada by approximately 500 basis points, other international by approximately 510 basis points, and total company by approximately 140 basis points. The impact from revenue recognition standard ASC 606 was a benefit of approximately 130 basis points for the U.

S. And 100 basis points for the total company. The negative impact of cannibalization was approximately fifty basis points in the U. S, seventy basis points in Canada, ninety basis points in other international and sixty basis points for the total 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, deli and liquor. Hardlines were positive mid single digits. Better performing departments were toys and seasonal, majors and haba. Softlines were also up mid single digits.

Better performing departments included kiosk, home furnishing and housewares. And finally, fresh foods were also up mid single digits. Better performing departments included service deli and meat. Within the ancillary businesses, gasoline, optical and hearing aids had the best comp sales increases. Gasoline price inflation positively impacted total reported comp sales by approximately 60 basis points.

The average selling price was higher 4.7% year over year at $3.14 per gallon this year compared to $3 a gallon a year earlier. Our comp traffic or frequency for April was up 3.3% worldwide and 3.5% in the U. S, which includes the detriment from the Easter shift. Traffic for the 9 weeks of March April combined was up 3.8% worldwide and 3.7% in the U. S.

The average transaction was up 2.0% for the month, which includes the negative impact from foreign exchange and positive impacts from gasoline inflation and revenue recognition. Looking ahead, the May reporting period will include the 4 weeks beginning May 6 and ending June 2, compared to the 4 weeks beginning May 7 and ending June 3, 2018. May sales will be released at 1:15 Pacific Time on June 5. Prior to that, on May 30, we will be releasing our Q3 FY 2019 earnings. Earnings will be announced after market close that day and a conference call will follow at 2 p.

M. The call will be streamed live via our Investor Relations Web site. Costco currently serves 72 warehouses, including 535 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 April 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, May 15th.

Thanks for calling Costco, and have a great day.

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