Costco's Q4 Profit Rises Despite Slower Sales Growth
Costco, the popular retailer, saw a rise in its profit for the fourth quarter, even though its U.S. locations experienced slower comparative sales growth. Let's take a closer look at the numbers:
Net Income
The company reported a profit of $2.16 billion in the 17-week fourth quarter compared to $1.87 billion in the same period last year. This exceeded analysts' expectations, who predicted a profit of $2.14 billion.
Sales
Costco's sales increased by 9.4% to reach $77.4 billion. However, this fell slightly short of analysts' estimates of $77.7 billion.
Comparable Sales
In the U.S., comparable sales rose by 0.2% during the fourth quarter. Overall, there was a 1.1% increase in comparable sales.
E-commerce
E-commerce sales in the 17-week quarter saw a decline of 0.8%. This indicates that Costco's online business has continued to experience a slowdown throughout the year.
Inventories
At the end of the fiscal fourth quarter, Costco had $16.7 billion worth of merchandise inventories, a slight decrease from the $17.9 billion seen in the previous year.
Despite the challenges faced in terms of slower sales growth and e-commerce, Costco managed to maintain a strong profit in the fourth quarter.
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