Costco reports solid start to FY 2024 with $56.7bn in Q1 net sales
Costco Wholesale Corporation (Nasdaq: COST), a leading global retailer, announced its operating results for the first quarter of Fiscal Year 2024, ending November 26, 2023. The company reported net sales of $56.72 billion, marking a 6.1 percent increase from $53.44 billion in the first quarter of the previous fiscal year. This growth in sales reflects Costco’s continued success in a challenging retail environment.
Sales Growth Across Various Regions and E-Commerce
Costco’s sales benefitted from a slight calendar shift in the U.S. and globally, owing to the fifty-third week in Fiscal Year 2023. The company witnessed growth across various regions, with the U.S. seeing a 2.0 percent increase in sales, Canada with a 6.4 percent increase, and other international locations experiencing an 11.2 percent rise. E-commerce also showed a positive trend with a 6.3 percent increase.
Costco Reports Strong Sales Growth and Declares $15 Special Cash Dividend Per Share
Significant Increase in Net Income and Earnings Per Share
Net income for the quarter stood at $1,589 million, or $3.58 per diluted share, compared to $1,364 million, or $3.07 per diluted share, in the same period last year. This year’s results included a tax benefit related to stock-based compensation, enhancing the company’s profitability.
Special Cash Dividend Announcement for Shareholders
In a move that underscores its financial strength and commitment to shareholder value, Costco announced that its Board of Directors has declared a special cash dividend on Costco common stock of $15 per share. This dividend, payable on January 12, 2024, to shareholders of record as of December 28, 2023, represents an aggregate payment of approximately $6.7 billion.
Costco’s Global Operations and E-Commerce Expansion
Costco continues to expand its global footprint, operating 871 warehouses worldwide, including a significant presence in the United States, Canada, Mexico, Japan, and various other countries. The company’s robust e-commerce platforms across multiple regions further solidify its position as a leader in the retail sector.