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Costco August Comps, Sales Rise - Update

(RTTNews) - Warehouses operator Costco Wholesale Corp. (COST) Thursday reported increases in comparable store sales and total sales for the month of August.

For the four weeks ended August 29, the Issaquah, Washington-based company's same-store sales rose 7% with a 6% growth in the U.S. and an 11% increase in International business.

According to Costco, comparable sales benefited from inflation in gasoline prices and strengthening foreign currencies. Excluding these effects, comparable sales for the four-week period grew 5% with a 5% growth in the U.S. and a 7% improvement internationally.

In July, the company reported 6% higher comparable sales. The rise was 4% in the U.S. and 14% overseas.

Same-store sales in the 16 weeks ended August 29 increased 6% and the rise was 7% for the 52-week period. Excluding the effects of gasoline price variation and foreign exchange rates, comparable store sales rose 4% for 16 weeks as well as 52 weeks.

The company's net sales in August increased 9% to $5.9 billion from $5.4 billion in the same four-week period last year.

Fourth-quarter net sales grew 8% to $23.6 billion from $21.9 billion. On average, 18 analysts polled by Thomson Reuters expected fourth-quarter revenue of $24.22 billion.

In the 52-week period, net sales were $76.3 billion, up 9% from $69.9 billion in the 52-week fiscal year ended August 30, 2009. Wall Street was looking for full-year revenues of $77.97 billion.

As of August 29, the company had 572 warehouses in operation, including 416 in the U.S. and Puerto Rico, 79 in Canada and 22 in the U.K.

COST closed Wednesday's regular trade at $57.79, up from the prior close of $56.50, on 3.97 million shares.