Costco eCommerce Sales Soar 74.8 Pct Amid Pandemic

Costco Wholesale Corporation, which operates just over 800 warehouses, reported its net sales for the second quarter climbed by 14.7 percent.

The company’s eCommerce sales jumped 74.8 percent for the quarter excluding the impacts from changes in gasoline prices and foreign exchange, while same-store sales increased 12.9 percent on that adjusted basis.

Executive Vice President, Chief Financial Officer and Director Richard A. Galanti said on the earnings call that the company’s curbside pickup test in Albuquerque is ongoing.

“We don’t really have a lot to add at this time as the test is recent and continuing. The pilot’s going well, and members have responded to it,” Galanti said.

In terms of supply chain challenges, Galanti said international trade has continued to present an issue when it comes to container shortage and port delays.

“This has caused timing delays on certain categories including furniture, sporting goods, lawn and garden and even some food and sundries items like seafood, imported cheese and oils. We expect these pressures to ease in the coming months,” Galanti said on the call.

As for its overall results, Costco reported earnings per diluted share of $2.14 on sales of $43.89 billion. Analysts had forecast $2.45 in earnings per share on $43.7 billion in revenue.

Costco currently operates 804 warehouses, which are located in the United States, Puerto Rico, Mexico, Japan, Taiwan, Spain, France, Canada, the United Kingdom, Korea, Australia, Iceland and China.

Furthermore, the warehouse club chain runs online shopping websites in the United States, United Kingdom, Korea, Japan, Canada, Mexico, Taiwan and Australia.

As previously reported, Costco has quietly added curbside pickup as a choice at three Albuquerque locations, but the choice carries multiple provisos.

For instance, customers have to order a minimum of $100 in merchandise, while the warehouse club company said on its site that it’s adding a $10 charge since curbside pickup “adds an additional expense to our low-cost business model and limited markup structure.”