© Reuters. FILE PHOTO: Customers queue to enter a Costco Wholesale store in Chingford, Britain March 15, 2020. REUTERS/John Sibley

(Reuters) -Membership-only retail chain Costco Wholesale Corp (NASDAQ:) reported quarterly revenue on Thursday that beat analysts’ estimates and said it was optimistic about sustained demand for high-margin items, such as jewelry and home furnishings.

Costco, like several other retailers, has benefited from the easing of pandemic-related restrictions and stimulus checks, as more people visited its cavernous stores to buy everything from groceries to sporting goods.

The company said it was beginning a phased return of food sampling and plans to bring back seating at most of its food courts.

Costco added it continued to see strength in its non-foods businesses and its travel division, which offers hotel rooms and cruise tickets to its members, aided by pent-up demand and COVID-19 vaccine roll-outs.

However, the company said it was still pressured by supply delays, higher freight costs and chip shortages, which were impacting deliveries.

“There have been and are a variety of inflationary pressures that we and others are seeing. Inflationary factors abound,” Chief Financial Officer Richard Galanti said.

Costco added it was tackling supply chain delays by adjusting orders.

Comparable sales, excluding the impact of fuel and currency fluctuations, jumped 15.1% in the third quarter, compared with estimates of a 11.46% rise, according to Refinitiv IBES.

Net income attributable to the company rose to $1.22 billion, or $2.75 per share, in the quarter ended May 9, from $838 million, or $1.89 per share, a year earlier.

Analysts on average had expected a net income of $2.34 per share.

Total revenue rose 21.5% to $45.28 billion, compared with estimates of $43.64 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here