Costco Profit Tops Estimates in its Q4 2015 and Fiscal Year 2015 Financial Report
ISSAQUAH, WA - Costco has announced its financial results for its fourth quarter 2015 and fiscal year 2015, showing better-than-estimated earnings and increased membership sales.
The company also announced that it will further emphasize fresh produce and organics, providing more of its walk-in cooler spaces. When asked about Costco’s proposed remodels, SVP and CFO for the company, Richard Galanti, explained, “At just our Costco across the street we’ve added 10 to 15 thousand feet and greatly expanded the walk-in coolers for produce and dairy. When you’re doing $300 million in some of these units, you can really drive incremental and good sales by expanding and adding refrigeration and fresh foods.”
Galanti also added that organics will also be a piece of that expansion.
Net income for Q4 rose 10 percent to $767 million, or $1.73 a share, the company’s report said Tuesday, while analysts surveyed by Thomson Reuters projected a profit of only $1.66 a share on revenue of $36.21 billion. Costco’s sales rose 1 percent to $35 billion, helped by a 2.2 percent gain in membership fees.
The company has 686 membership warehouses around the world and boasts a loyal membership with a renewal rate of about 91% in the U.S. and Canada and about 87% worldwide as of 2014, according to a regulatory filing. The company said it plans to open up 12 additional warehouses (including one relocation) before the end of calendar-year 2015.
Other highlights from the report include:
- Net income for FY2015 was $2.38 billion, or $5.37 per diluted share, compared to $2.06 billion, or $4.65 per diluted share in FY2014.
- Net sales for Q4 were $34.99 billion, an increase of one percent from $34.75 billion in fiscal 2014.
- Net sales for FY2015 were $113.67 billion, an increase of three percent from $110.21 billion last year.
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