Costco Wholesale Corporation (COST)
NASDAQ: COST · Real-Time Price · USD
1,007.02
-7.36 (-0.73%)
Apr 24, 2026, 2:45 PM EDT - Market open
← View all transcripts

Monthly Sales Update November 2018

Dec 6, 2018

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 November, which started on Monday, November 5 and ended on Sunday, December 2. This period is compared to the 4 weeks beginning on Monday, November 6 and ending on Sunday, December 3, 2017. 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 these statements except as required by law. Now with regards to sales, as reported in our release, net sales for the 4 week month of November came in at 12,770,000,000 an increase of 9.8 percent from $11,630,000,000 last year. For the 12 week Q1 ended November 25, 2018, net sales came in at $34,310,000,000 an increase of 10.3% from $31,120,000,000 last year. For the 13 weeks ended December 2, 2018, net sales came in at 37 point $57,000,000,000 an increase of 10.2 percent from $34,090,000,000 last year.

Comparable sales were as follows: the U. S, the 4 weeks was at 12.2% 12 weeks, 11.0 percent 13 weeks, 11.1 percent Canada, the 4 weeks was at 1.8 percent the 12 weeks was at 2.4%, 13 weeks, 2.2%. Other international, 4 weeks, 0.7%, 12 weeks, 4.0 percent 13 weeks, 3.4 percent. Total company, the 4 weeks is a 9.2% 12 weeks, 8.8%, 13 weeks, 8.7%. E commerce, 4 weeks was 46.1%, the 12 weeks was a 32.3% and the 13 weeks was a 34.5%.

As discussed in previous months, the company adopted revenue recognition standard ASC 606 for fiscal 2019. The impact on the total company in November was a benefit of a little more than 1%. For e comm, the impact resulted in a benefit of approximately 13%, which is due to timing and will be a detriment in December January. Comparable sales excluding the impacts from changes in gasoline prices, foreign exchange and revenue recognition, ASC 606 were as follows: the U. S.

4 weeks, 10.1 percent 12 weeks, 8.3 percent 13 weeks, 8.4% Canada, 4 weeks, 5.0%, 12 weeks, 5.5%, 13 weeks, 5.3 percent other international, 4 weeks, 3.7 percent 12 weeks, 5.8 percent 13 weeks, 5.5 percent and total company, 4 weeks, 8.5 percent 12 weeks, 7.5 percent 13 weeks, 7.5 percent. E Commerce, the 4 weeks was at 34.0 percent 12 weeks, 26.2 percent at 13 weeks, 27.9%. In terms of regional and merchandising categories, the general highlights for the month of November were as follows. U. S.

Regions with the strongest results were the Midwest, San Diego and the Bay Area. Internationally, in local currencies, we saw the strongest results in Spain, Mexico and Japan. Foreign currencies year over year relative to the U. S. Dollar impacted November comp sales as follows: Canada and other international were each hurt by a little less than 3 75 basis points and total company was hurt by approximately 100 basis points.

The negative impact of cannibalization was approximately 60 basis points in the U. S, a little less than 75 basis points in Canada and in other international and approximately 70 basis points for the total company. Moving to our merchandise highlights, the following comparable sales results by category for November exclude the impact of foreign exchange. Food and sundries were positive mid to high single digits. Departments with the strongest results were candy, tobacco, sundries and frozen.

Hardlines were positive in the mid teens. Better performing departments were automotive, sporting goods and majors. Softlines were up low double digits. Better performing departments included small appliances, home furnishings, apparel and special order kiosks. Fresh foods were up mid single digits.

Better performing departments included meat, deli and bakery. Within the ancillary businesses, gasoline, optical and food court had the best comp sales increases. Gasoline price inflation added a little less than 50 basis points to total reported comp sales. The average selling price was up 5% at $2.81 this year compared to $2.68 last year. Our comp traffic or frequency for November was up 5.9% worldwide and 6.8% in the U.

S. The average transaction was up 3.1% for the month, which negative impact from foreign exchange and positive impact from both gasoline price inflation and revenue recognition. We will announce our Q1 FY 2019 earnings after market close on Thursday, December 13, 2018 at 1:15 p. M. Pacific Time.

A call to discuss these results will be held at 2 p. M. Pacific Time and can be streamed live via our Investor Relations website. Looking ahead, the December reporting period will include the 5 weeks beginning December 3 and ending January 6 compared to the 5 weeks beginning December 4 ending January 7, 2018. Sales will be announced Wednesday, January 9, after market close at 1:15 Pacific Time.

Costco currently operates 768 warehouses, including 5 3 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 15 in Korea, 13 in Taiwan, 10 in Australia, 2 in Spain, 1 in Iceland and 1 in France. Conscol also operates e commerce websites in the U. S, Canada, U. K, Mexico, Korea and Taiwan. If you have any questions regarding our November 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, Thursday, December 13. Thanks for calling Costco, and have a great day.

Powered by