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Costco Wholesale Corp. Inc. shares were flat in after-hours trading Wednesday after the retailer reported yet another strong month of sales leading to its fiscal fourth-quarter results on Sept. 24.
Costco COST, +2.12% said August net sales rose 15% to $13.56 billion from the same quarter a year ago. Previously, it reported net sales in July rose 14.1% to $13 billion, compared with the same month a year earlier. The discounter said June sales rose 11% to $16.2 billion, and May net sales rose 7.5% to $12.6 billion.
For the 16-week fourth quarter ended Aug. 30, Costco has reported net sales of $52.3 billion, an increase of 12.7% compared to net sales of $46.4 billion during the similar period last year.
The numbers placed an emphatic stamp on the popularity and success of the company during the pandemic, and strongly suggest it will match if not exceed the $51.9 billion in fourth-quarter revenue expected from analysts surveyed by FactSet.
Costco’s same-store sales have slowly rebounded the past few months as mask-wearing customers became more comfortable in an industry that is struggling to rebound from the virus. Walmart Inc. WMT, +0.06% had a great quarter, but reported same-store sales rose just 4% in July, and its shares fell. Target Corp.’s TGT, -0.47% comparable sales held up better, as did its stock.
Store growth is an “underappreciated, long-term growth driver for Costco,” RBC Capital Markets analyst Scot Ciccarelli said in an Aug. 20 note, in which he maintained an outperform rating and $381 price target on Costco’s stock. The company has outperformed in 2020, he said, as shoppers flock to stores for low-price essentials.
Costco shares are up 22% this year. The broader S&P 500 index SPX, +1.53% has improved 11% in 2020.
