Costco Wholesale Corporation (NASDAQ: COST) stock fell over 1.3% on 13th December, 2019 (as of 10:10 am GMT-5; Source: Google finance) after the company reported the net income for the quarter of $844 million compared to $767 million last year in the first quarter. Net sales for the quarter rose 5.6% to $36.24 billion over the $34.31 billion sold during the first quarter of last year. Comparable sales for the first quarter of fiscal 2020 in the U.S. on a reported basis was 4.7%, ex-gas deflation was 5.0%. Overall, the total company was a 4.3% reported and ex gas deflation and FX of 5.0% E-commerce on a reported basis was a 5.5% and a 5.7% on a reported basis. Total and comparable company sales for the quarter were negatively affected due to approximately 0.5% due to Thanksgiving occurring a week later this year. E-commerce sales in the quarter were negatively affected due to an estimated 12 percentage points. Wall Street analysts were Costco Wholesale to report earnings of $1.710 per share on revenue of $37.25 billion.
Meanwhile, Costco is currently operate 785 warehouses, including 546 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, and Japan.
On the other hand, the company has reported net sales of $13.62 billion for the retail month of November, the four weeks ended December 1, 2019, an increase of 6.7 percent from $12.77 billion last year. E-commerce sales in November were negatively affected due to an estimated 20 percentage points, mainly due to Thanksgiving/Black Friday/Cyber Monday occurring a week later this year compared to last year and, to a lesser extent, website performance issues experienced on the Company’s U.S. and Canadian e-commerce websites on Thanksgiving Day and Black Friday. Total and comparable sales were negatively affected due to an approximately one and one-half percent.
Moreover, the first quarter traffic or shopping frequency rose 3.4% worldwide and 3.1% in the U.S
Additionally, the company had declared a quarterly cash dividend on Costco common stock of 65 cents per share, which was paid on November 15, 2019, to shareholders of record at the close of business on November 1, 2019.