Costco beats on profits as online sales surge, stock jumps 4%

Shares of the wholesale retailer Costco jumped 4% early Friday after the company reported second-quarter profits that topped Wall Street’s expectations, though sales fell short of estimates.

Here’s what Costco reported, along compared with what analysts surveyed by Bloomberg were expecting:

  • Adjusted earnings per share (EPS): $US2.01 versus $US1.69 expected.
  • Revenue: $US35.4 billion versus $US35.7 billion expected.

Costco’s quarterly results show its e-commerce sales are far outpacing other segments of its business. The company’s adjusted comparable sales for the second-quarter (the 12 weeks ending February 17) surged 25.5% across e-commerce. In-store sales rose by 7.2%, 6%, and 4.8% across US, Canada, “other international” markets, respectively.

The company also said on its quarterly earnings call that it would raise its minimum wages from $US14 and $US14.50 up to $US15 and $US15.50, respectively. Costco’s decision comes as the US experiences an increasingly tight labour market. The Bureau of Labour Statistics on Friday morning said the national unemployment rate fell to 3.8%.

Costco was up 11% this year, but is still 12% below its record high of $US245.16 set last September.

Read more coverage from Markets Insider and Business Insider:

We asked the biggest Netflix bull and bear on Wall Street the same 5 questions. Here’s what they said about the streaming giant’s cash burn, competition, and what the other side is getting wrong.

Bank of America has a simple solution for companies looking to boost their stocks: Put more women in charge. Here are the charts that prove it.

Investors don’t know how to spend the $US240 billion that’s recently poured into private-credit funds – but a top JPMorgan executive has 3 big ideas

Costco shares.Markets InsiderCostco shares.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.