- Company News
- Earnings Reports and News
COST comparable sales growth topped analyst estimates
ByMatthew Johnston
Published May 27, 2021
05:03 PM EDT
Key Takeaways
- Costco's comparable sales growth accelerated to its fastest pace in more than four years, beating analysts' expectations.
- Comparable sales growth is a key metric of Costco's revenue growth from its warehouses and e-commerce sites that have been in operation for at least one year.
- E-commerce comparable sales rose 41.2% compared to the year-ago quarter.
| Costco Earnings Results | |||
|---|---|---|---|
| Metric | Beat/Miss/Match | Reported Value | Analysts' Prediction |
| EPS | Beat | $2.75 | $2.35 |
| Revenue | Beat | $45.3B | $43.7B |
| Comparable Sales Growth | Beat | 20.6% | 16.0% |
Source: Predictions based on analysts' consensus fromVisible Alpha
Costco (COST) Financial Results: Analysis
Costco Wholesale Corporation (COST) reported Q3 FY 2021 earnings that dramatically beat analysts' expectations. Earnings per share (EPS) surpassed analyst forecasts by a wide margin, rising 45.5% year over year (YOY). Costco's revenue came in above analyst estimates, up 21.5% compared to the year-ago quarter. Comparable sales growth also beat analyst expectations. The company's shares were down about 0.1% in after-hours trading. Over the past year, Costco's shares have provided atotal returnof 30.9%, well above the S&P 500's total return of 38.4%.
COST Comparable Sales Growth
Costco's comparable sales growth accelerated to 20.6%, the fastest pace since at least the first quarter of FY 2017. Costco, which operates on a membership-based model, defines comparable sales as net sales generated from its membership warehouses (including relocations, remodels, and expansions), as well as e-commerce websites that have been in operation for over one year. Growth in comparable sales is achieved through an increase in the shopping frequency from new and existing members as well as in the amount they spend per visit. When comparable sales are growing, it's a sign that existing sales channels have not yet saturated the local market, nor are those sales being cannibalized by the company's newly opened stores.
Costco's next earnings report (for Q4 FY 2021) is estimated to be released on Sep. 22, 2021.
Do you have a news tip for Investopedia reporters? Please email us at
tips@investopedia.com
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Costco Wholesale Corp. "COSTCO WHOLESALE CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL 2021."
TradingView. "Price Chart: COST and S&P 500."
Visible Alpha. "Financial Data."
Costco Wholesale Corp. "Form 10-Q for the quarterly period ended February 14, 2021," Page 19.
Yahoo! Finance. "Earnings Calendar: COST."
Compare Accounts
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Provider
Name
Description
Partner Links
Related Terms
What Is Social Networking?
Social networking uses internet-based social media platforms to connect and share content with friends, family, colleagues, or customers.
more
Guide to Company Earnings
A quarterly earnings report is a filing made by public companies every three months to report on their most recent financial performance.
more
What Are Above-The-Line Costs? What's Included Vs. Below-The-Line
Above-the-line costs refer to either costs above the gross profit line or the costs above the operating income line, depending on the type of company.
more
What Is Relevant Cost in Accounting, and Why Does It Matter?
Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions.
more
What Is Inside Sales? Definition, How It Works, and Advantages
An inside sale happens when customers are sold products and services through the phone or online rather than at the vendor's physical location.
more
Amazon Effect: Definition, Statistics, Impact on Consumers
The Amazon effect refers to the ongoing evolution and disruption of the offline retail market resulting from an increase in ecommerce activities
more
- About Us
- Terms of Service
- Dictionary
- Editorial Policy
- Advertise
- News
- Privacy Policy
- Contact Us
- Careers
- #
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- K
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- U
- V
- W
- X
- Y
- Z
Investopediais part of the Dotdash Meredithpublishingfamily.
We Care About Your Privacy
We and our 100 partners store and/or access information on a device, such as unique IDs in cookies to process personal data. You may accept or manage your choices by clicking below, including your right to object where legitimate interest is used, or at any time in the privacy policy page. These choices will be signaled to our partners and will not affect browsing data.
We and our partners process data to provide:
Store and/or access information on a device. Use limited data to select advertising. Create profiles for personalised advertising. Use profiles to select personalised advertising. Create profiles to personalise content. Use profiles to select personalised content. Measure advertising performance. Measure content performance. Understand audiences through statistics or combinations of data from different sources. Develop and improve services. Use limited data to select content.
