Costco (COST 157.86, -9.21) has slid 5.5% despite reporting better than expected quarterly results. Shares of Costco have endured a difficult stretch since Amazon (AMZN 982.30, +1.45) acquired Whole Foods amid concerns that the new tie-up would lure customers away from Costco. Including today's decline, shares of Costco are down 1.1% for the year after showing a 6.3% year-to-date loss in late August.
The wholesale retailer reported above-consensus fourth quarter earnings of $2.08 per share on a 15.7% year-over-year increase in revenue to $42.30 billion, which was also better than expected.
Company-wide comparable sales (excluding gasoline and FX impact) during the fourth quarter increased 5.7% while September sales grew 6.2%. Sales in the United States grew 5.8% for the quarter, increasing 7.1% in September. Canadian sales increased 4.8% during the fourth quarter and grew 1.4% in September. Other international sales increased 6.0% for the quarter, growing 7.2% in September.
Costco saw a notable increase in E-commerce sales, an area the company is likely to emphasize in response to increased competition from Amazon. E-commerce sales grew 21.0% during the quarter, jumping 30.0% in September.
Membership fee revenue grew 13.3% year-over-year to $943 million.