Average Delivery Time Across Postal Service Network Remains Stable

Costco Wholesale Corporation reported net sales of $13.04 billion for the retail month of July, the four weeks ended August 2, 2020, an increase of 14.1 percent from $11.43 billion last year. For the forty-eight weeks ended August 2, 2020, the Company reported net sales of $149.66 billion, an increase of 8.8 percent from $137.56 billion during the similar period last year.

The strike that hit the Western Canada ports, including the country’s largest, the Port of Vancouver, has ended after the International Longshore and Warehouse Union (ILWU) Canada and waterfront employers reached a deal on a tentative four-year contract, reported Reuters. The agreement still needs to be ratified by both sides. The walkout started on July 1 when roughly 7,500 dock workers represented by the ILWU walked off the job after failing to reach a new contract.

Total consolidated revenues increased 44.8 percent, or 271.2 million, to $877.3 million, compared with total consolidated revenues of $605.6 million in the prior year period, driven by ecommerce growth of 59.7 percent including revenue contributions from PersonalizationMall.com (“PMall”), which the Company acquired in August 2020. Excluding the contribution from PMall, total net revenues increased 24.7 percent and e-commerce net revenues increased 34.6 percent compared with the prior year period. Gross profit margin for the quarter increased 100 basis points to 45.4 percent, compared with 44.4 percent in the prior year period. Operating expenses as a percent of total revenues was 28.6 percent, compared with 28.0 percent in the prior year period. Excluding the impacts of the Company’s non-qualified deferred 401k compensation plan and one-time costs primarily associated with its acquisition of PMall, operating expenses, as a percentage of total revenues was 28.3 percent in the quarter. Net income for the quarter increased 53.3 percent, or $39.5 million, to $113.7 million, or $1.71 per diluted share, compared with net income of $74.2 million or $1.12 per diluted share in the prior year period. Adjusted net income for the quarter increased 54.1 percent, or $40.1 million, to $114.2 million, or 41.72 per diluted share.