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Source: Company reports/StreetAccount[/caption]
Costco Comps Above Consensus, E-Commerce Comparable Sales Growth Slows
Source: Company reports/StreetAccount[/caption]
Costco Comps Above Consensus, E-Commerce Comparable Sales Growth Slows
- In June, Costco grew same-store sales 5.4% year over year, slightly faster than the 4.2% growth in May and 10 basis points above the consensus estimate recorded by StreetAccount. Ex fuel, global comps were up 5.1% in June.
- Costco’s e-commerce comparable sales growth was 15.7% in June, slower than May’s 20.2% growth.
- Ex fuel, Costco US comps were up 5.3% in June. The retailer’s strongest results in the US were in the Midwest, the San Francisco Bay Area and San Diego. In terms of international performance, Taiwan, Mexico and Japan posted the strongest results.
- Currency fluctuations negatively impacted the company’s comps. Canada same-store sales growth was hurt by about 70 basis points, while other international comp growth was negatively impacted by approximately 200 basis points. Overall, currency fluctuations hurt group comparable sales by 30 basis points.
- Cannibalization negatively impacted US comps by about 50 basis points, Canada by 130 basis points and other international segments by approximately 190 basis points. Overall, cannibalization negatively impacted company comps by 80 basis points.
- Revenue recognition standard ASC 606 had a positive impact of approximately 160 basis points for the US and 120 basis points for the total company.
- In the merchandise segment, excluding currency effects, comps for food and sundries were positive mid-single digits. The departments that showed the strongest results were candy, liquor and tobacco. Hardlines posted comps in the positive mid-single digits: The departments with strong performance were toys, seasonal, health and beauty aids and automotive. Softlines were up mid-single digits, the departments that showed strong performance were apparel, housewares and domestics.
- Fresh food comparable sales were up mid-single digits, with service deli and meat being better-performing departments. In the ancillary businesses, hearing aids, optical and pharmacy saw the strongest comp sales increases.
- Gasoline price deflation negatively impacted total comps by 60 basis points. The overall average selling price decreased to $2.94 per gallon this year compared to $3.07 a year earlier.
- Buckle’s comparable sales increased 6.2% year over year in June, compared to a 0.8% decrease in May. Net sales increased 5.5% year over year in June, compared to a 1.1% decrease in May.
- By business segment, total sales in men’s were up 6.5% year over year. The men’s segment accounted for approximately 56% of total sales in June 2019. Price points were down about 3% for June in the men’s segment.
- Total sales in the women’s segment were up 5% year over year. The women’s segment accounted for 44% of total monthly sales in June 2019. Price points were down about 6% in the women’s business.
- By product type, accessories sales were up 5.5% year over year in June and accounted for 10.5% of total sales. Footwear sales were up 20.5% year over year and represented 7.5% of total sales. Average accessory price points were down by about 14.5% and average footwear price points were down about 3%.
- In May, units per transaction grew 4% and the average transaction value fell 0.5%.
- Cato’s sales increased 5.0% year over year to $76.6 million, compared to a 2.0% decrease in May. Comparable sales increased 8.0% year over year in June, compared to a 1.0% increase in May.
- Cato noted that June same-store sales exceeded company expectations, however, the company will “remain cautiously optimistic.”
- In June, the company closed one store in St. Mary’s, Georgia. As of July 6, 2019, the company operated 1,301 stores in 31 states, down from 1,350 stores in 33 states as of July 7, 2018.