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 September 2018

Oct 10, 2018

David Sherwood
AVP of Finance and Investor Relations, Costco Wholesale

Hello, 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 September, which started on Monday, September 3rd, and ended on Sunday, October 7th. This period is compared to the five weeks beginning on Monday, September 4th, and ending on Sunday, October 8th, 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, the company does not undertake to update these statements except as required by law. With regards to sales. As reported in our release, net sales for the five-week month of September came in at $13.64 billion, an increase of 10.3% from $12.37 billion last year. Beginning in fiscal year 2019, the company adopted revenue recognition standard ASC 606. For all of fiscal year 2019, we estimate the new standard will benefit net and Comparable sales by approximately 1%. Comparable sales were as follows. On a reported basis for five weeks, the U.S. comp was at 10.4%, Canada was at 2.9%, other international was at 4.3%, total company was at 8.4%. E-commerce, 28.6%. Comparable sales, excluding the impacts from changes in gasoline prices, foreign exchange, and ASC 606 were as follows.

Without gas, FX, and rev rec, the five weeks were, in the U.S., 7.7%, Canada 6.4%, other international 6.2%, total company 7.3%, e-commerce 25.7%. In terms of regional and merchandising categories, the general highlights for the month of September were as follows. U.S. regions with the strongest results were the Midwest, Southeast, and San Diego. Internationally, in local currency, we saw the strongest results in Spain, Mexico, Japan, and Taiwan. Foreign currencies year-over-year relative to the U.S. dollar impacted September Comparable sales as follows. Total company was hurt by approximately minus 120 basis points. Canada was hurt by a little more than 550 basis points, while other international was hurt by a little more than 250 basis points. Revenue recognition benefited sales by approximately 90 basis points in the U.S. and approximately 70 basis points for the total company.

The negative impact of cannibalization was a little less than 50 basis points in the U.S., a little less than 60 basis points in Canada, a little less than 90 basis points in other international, approximately 60 basis points for the total company. Moving to merchandise highlights, the following comparable sales results by category for September exclude the impact of foreign exchange. Food and sundries were positive mid to high single digits. Departments with the strongest results were tobacco, candy, and sundries. Hardlines were positive high single digits. Better-performing departments were majors, toys, and seasonal and automotive and tires. Softlines were up low double digits. Better-performing departments include home furnishing, luggage, apparel, and kiosks. Fresh foods were up mid-single digits. The better-performing departments were produce and meat. Within the ancillary businesses, gasoline, hearing aids, and optical had the best comparable sales increases in September.

Gasoline price inflation added a little more than 150 basis points to total reported Comparable sales. The average selling price was up 14% at $3.06 this year compared to $2.68 last year. Our comp traffic or frequency for September was up 4.6% both worldwide and in the U.S. The average transaction was up 3.6% for the month, which includes the negative impact from foreign exchange and positive impact from both Gasoline price inflation and revenue recognition. Looking ahead, the October reporting period will include the four weeks beginning October 8th and ending Sunday, November 4th, compared to the four weeks beginning October 9th, ending Sunday, November 5th, 2017. Sales will be announced Wednesday, November 7th, after market close at 1:15 P.M. Pacific Time.

Costco currently operates 763 warehouses, including 528 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, two in Spain, one in Iceland, and one in 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 September 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 P.M. Pacific Time, Wednesday, October 17th. Thanks for calling Costco Wholesale, and have a great day.