ISSAQUAH, Wash. (AP) — Costco is drawing more shoppers and signing up more new members, helping the wholesale club operator's fiscal fourth-quarter net income and revenue climb. Its performance beat Wall Street's expectations, and its shares hit an all-time high Wednesday.
Consumers have been drawn to stores like Costco, BJ's Wholesale Club and Sam's Club because they feel like they are getting bargains by purchasing items in bulk. Memberships at such stores have continued to rise in recent years as shoppers worried about the economy and high unemployment look for ways to save money.
For the period ended Sept. 2, Costco Wholesale Corp. said Wednesday that it earned $609 million, or $1.39 per share. That compares with $478 million, or $1.08 per share, a year earlier.
There was an extra week in the current quarter.
Analysts predicted earnings of $1.31 per share, according to a FactSet survey.
Costco shares climbed $2.90, or 2.9 percent, to $102.54 in afternoon trading. The stock reached $104.43 earlier in the session, a new all-time high.
Total revenue increased 14 percent to $32.22 billion from $28.18 billion as sales improved and the Issaquah, Wash., company made more money from membership fees. Wall Street expected revenue of $31.59 billion.
Membership fee income totaled $694 million in the quarter as renewal rates came in at approximately 90 percent. New memberships climbed 2 percent from a year ago. The company said that there were also more shoppers visiting its clubs.
Sales of softlines, which can include items like clothing and footwear, posted a high single-digit percentage increase, with small electric appliances among the strongest within the category. Sales of food and small items like toiletries rose by a mid-single-digit percentage, as did hardlines, which can include hardware and lawn and garden products.