Costco quarterly revenue misses estimates on weak e-commerce growth

Reuters

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12.12.2019 21:50

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(Reuters) - Costco Wholesale Corp (COST.O) reported lower-than-expected quarterly revenue on Thursday, hit by a slowdown in e-commerce sales growth.

The warehouse club operator said the Thankgiving weekend moving into the second quarter also impacted sales in the first quarter ended Nov. 24. It also faced website outage during the Thanksgiving period, but the impact would only be known in the current quarter.

The company’s e-commerce comparable sales grew only 5.7% in the first quarter, when it had risen 21.9% in the previous quarter and 26.2% in the year-ago quarter.

However, Costco’s comparable sales, excluding the impact of currency and gas price fluctuations, rose 5%, beating the average analysts’ estimate of 4.95%.

Excluding items, Costco earned $1.73 per share, beating Wall Street expectations of $1.72.

Total revenue rose to $37.04 billion from $35.07 billion. Analysts, on average, had expected $37.25 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose 10% to $844 million, or $1.90 per share, from the year-ago quarter.

Shares of the Issaquah, Washington-based company that have risen 45% this year were down about 1% in extended trading.

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