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ISSAQUAH, Wash. — Costco Wholesale Corp. reported financial results for its 17-week fourth quarter and 53-week fiscal year ended September 3 that featured continued growth but at a slower pace.
Shoppers made more trips to its warehouse clubs but spent less per visit, with fewer purchases of big-ticket items, the company announced September 26.
Net sales for the fourth quarter were $77.4 billion, an increase of 9.4% from the 16-week quarter a year earlier. For the full year, net sales were $237.7 billion, a 6.7% increase over the 52-week fiscal 2022.
Fourth-quarter net income of $2.1 billion was nearly 16% higher than in the same period last year. For the full year, net income was up 7.7% to $6.2 billion.
Traffic increased 5% in the United States in the fourth quarter and 5.2% worldwide, the company said. Transaction amounts declined 3.9% in the U.S. and nearly 4.5% companywide.
Comparable sales in the U.S. increased 3.1% in the fourth quarter and 4.2% for the full year, excluding changes in gasoline prices and foreign exchange.
E-commerce comps declined 0.6% in the United States and were down 4.8% for the full year.
On an earnings call, Costco chief financial officer Richard Galanti cited weakness in bigger-ticket, nonfood discretionary items as well as gas-price deflation. Costco added 40 or 50 “smaller-ticket indulgence items” in response to changes in consumer behavior, he said.
Costco said it ended the year with 71 million paid household members, up nearly 8% from a year ago. About 45% of those memberships are higher-tier executive memberships, which cost $120 a year, twice the price of a typical annual membership. Galanti said executive members account for more than 70% of Costco’s total sales.
Costco operates 861 warehouses, including 591 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
