Costco (COST) missed Wall Street’s sales forecast for the year-end holiday quarter, sending the big-box retailer’s stock down 5% as a result.
The Seattle-based company reported earnings per share (EPS) of $3.92 U.S. versus $3.62 U.S. that was expected for the fourth and final quarter of 2023.
However, revenue in the quarter came in at $58.44 billion U.S., which was below analysts’ consensus forecast of $59.16 billion U.S.
Despite the rare sales miss, Costco still managed to report year-over-year sales growth of 6% and strong gains in its e-commerce channel.
Food sales rose by mid single-digits in the quarter, with fresh food sales up in the high single-digits and non-foods up mid single-digits.
Ancillary businesses such as travel were up by low single digits, while the company’s food court, pharmacy and optical centres were the top performers during the quarter.
Gasoline sales at Costco fell during the quarter due to lower prices per gallon.
Foot traffic at Costco stores increased 5.3% worldwide and 4.3% in the U.S., said the company.
E-commerce sales grew 18.4% in Q4 compared with a year earlier. App downloads were up by 2.8 million and now total 33 million.
Costco had 875 stores at the end of last year, including 603 in the U.S. During the quarter, Costco opened four new locations, including three in the U.S. and one in China.
Costco declined to raise its membership fees yet again, despite repeated calls from analysts to do so. The company last raised its membership fees in June 2017.
Prior to today (March 8), the stock of Costco had risen 62% over the last 12 months and was trading at an all-time high of $785.59 U.S. per share.
