Costco Wholesale experienced a robust November, indicating that customers were willing to indulge in their shopping during the Black Friday weekend. The company reported a 5.1% increase in sales compared to the previous year, reaching $20.1 billion. Additionally, same-store sales saw a 3.5% growth. In October, same-store sales had already shown a positive trend with a 3% increase compared to October 2022.
It is worth noting that the growth in same-store sales could have been more significant if it weren’t for a decline in gasoline prices. The global selling price per gallon decreased by approximately 9% when compared to the same period last year, resulting in a 1.1 percentage-point decrease in total same-store sales.
However, when excluding the effects of gas prices and foreign-exchange fluctuations, Costco’s same-store sales rose by an impressive 4.4% in November, surpassing the 3.4% growth seen in October. Moreover, foot traffic also saw a boost with comparable traffic increasing by 4.4% worldwide and 3.7% in the U.S.
The Thanksgiving holiday and the tempting Black Friday deals likely played a role in driving consumer demand. E-commerce sales saw a significant surge of 9.9%, which serves as a positive indicator of high demand during Black Friday, considering that many of these sales tend to involve discretionary purchases for the upcoming year-end holidays.
Despite the positive performance, Costco’s shares experienced a marginal decline during after-hours trading, resting at $587.75. Nonetheless, the stock has seen a remarkable increase of nearly 30% throughout this year. Investors eagerly anticipate Costco’s fiscal first-quarter earnings report on December 14.
The company also took a moment to acknowledge the passing of Charlie Munger, a longstanding board member who passed away on Tuesday. CEO Craig Jelinek expressed heartfelt condolences to Munger’s family and emphasized how deeply the company had benefitted from his wisdom and guidance over the past 25 years or more.
