So, here's how the membership machine is running these days. Costco Wholesale Corp. (COST) reported its second-quarter numbers after the bell on Thursday, and it was pretty much the Costco special: solid beats on the top and bottom lines, with growth coming from all the places you'd expect.
The retailer posted revenue of $69.60 billion, edging past analyst estimates of $69.29 billion. Earnings came in at $4.58 per share, just a penny above the $4.57 consensus. Net sales climbed 9.1% compared to the same period last year. But the real story, as always with Costco, is in the comparable sales figures—that's the measure of growth at stores open for more than a year.
Total comp sales were up 7.4%. That's a healthy number, but the breakdown tells a more interesting tale. In the U.S., comps grew 5.9%. In Canada, they were up a stronger 10.1%. And then there's the "Other International" category, which isn't just an afterthought—it exploded with 13% growth. That's the kind of number that gets the attention of investors wondering where the next leg of growth is coming from.
Of course, the engine that makes the whole Costco model hum is the membership fee. That revenue stream hit approximately $1.36 billion for the quarter, up nicely from $1.19 billion a year ago. It's the high-margin, recurring income that makes the razor-thin margins on rotisserie chickens and giant tubs of mayonnaise worth it.
The company said it now operates 924 warehouses worldwide, with 634 of those in the United States. It finished the quarter sitting on a mountain of cash—about $17.38 billion in cash and cash equivalents. Management was scheduled to hop on a call at 5 p.m. ET to walk through the details.
As for the stock? After the report hit, shares of COST were basically treading water in after-hours trading, hovering around $982. That's perhaps not surprising given the stock had already run up about 14% year-to-date heading into the print. Sometimes, even a good report is just what everyone already expected.
