Costco Wholesale CorporationCOST came out with its sales results for the month of June. The warehouse retailer reported an improvement of 1% in net sales to $11.01 billion for the five-week period ended Jul 5, 2015. However, we observe that the rate of increase has decelerated from 2% registered in both May and April.
On the comparable-store sales (comps) front, this Zacks Rank #3 (Hold) company disappointed with its performance. Comps dipped 1% in June after remaining flat for two consecutive months. Comps for June reflect an increase of 3% at the company's U.S. locations, offset by a decline of 8% at international locations.
However, excluding the effect of deflation in gasoline prices and the adverse impact of foreign currency fluctuations, Costco's comps for the month under review rose 6%, portraying comparable sales growth of an equivalent rate across its U.S. and international outlets.
Coming to Costco, comps for the 44-week period increased 2%, buoyed by a rise of 3% across its U.S. locations, offset by a 3% decline at the international locations. Excluding the effect of gasoline prices and foreign currency fluctuations, comps for the period jumped 7%, depicting an equivalent percentage increase at the U.S. and international locations. Net sales for the 44-week period improved 4% to $96.32 billion.
Costco, which competes with Wal-Mart Stores Inc. WMT , currently operates 679 warehouses, which includes 479 in the U.S. and Puerto Rico, 89 in Canada, 36 in Mexico, 26 in the U.K., 20 in Japan, 11 in Korea, 10 in Taiwan, 7 in Australia and 1 in Spain. Costco plans to open 8 more warehouses before the end of the fiscal year on Aug 30, 2015.
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