PARLEZ-VOUS FRANCAIS? RETAILERS IN QUEBEC MANDATED TO APPLY FRENCH SIGNAGE TO CANADIAN STOREFRONTS

The government in Quebec announced a proposed modification to the province’s sign rules that would require businesses ibn Quebec to add French to their outdoor signage. They did agree to retailers not having to alter their registered trademark names or logos. These retailers would be required to add a French word, description or slogan to their outdoor signage. The French words are not required to be larger than the non-French trademark name.

The government is requesting public feedback on the new proposed regulations for the next 45 days. WalMart’s regional president, Xavier Piesvaux, said the regulation “gives our companies the flexibility to communicate in French while keeping the integrity of our brand”. In 2014 major retailers, such as WalMart, Costco, Best Buy, Gap, Old Navy, Guess and Toys ‘R’ Us won a court battle ruling that storefront signs with their trademark in English does not contravene the Charter of the French Language.

Source: CBC CA NEWS

Costco Comps Surge 8% In U.S.

January 8, 2015

Costco showed again in December why it's the cream of the crop among warehouse club stores.

The Washington based retailer reported an increase of 8% in same store sales in the United States, excluding gasoline sales and foreign exchange.  Same-store sales at international stores rose by 1%.

Net sales for the retailer rose 5% to $12.2 billion in December from $11.53 billion a year earlier.

For the 18 weeks ended January 4, sales at stores open at least a year rose 4%.  They climbed 6% in the United States, but were flat overseas.  Total revenue for the 18-week period climbed 7 percent to $40.85 billion.

Costco Wholesale Corp., based in Issaquah, Washington, runs 671 warehouses, including 474 in the U.S. and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the U.K., 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain.

Source: Retailing Today

Costco Off To Great Start With Q1 Beat

December 10, 2014

The holiday season started strong at Costco where U.S. same store sales advanced 7 percent during the company's first quarter ended November 23.

Total company sales during the period increased 7 percent to nearly $26.3 billion from $24.5 billion.  Membership income grew slightly slower, advancing 6 percent to $582 million.  Same store sales excluding the effects of the strengthening U.S. dollar and fuel price deflation were 7 percent at U.S. and international locations.

Profits during the period increased to $496 million, or $1.12 per share, three cents better than analysts' consensus forecast, compared to $425 million, or 96 cents a share the prior year.

Costco ended the quarter with a total of 671 warehouses, including 474 in the United States and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain.

Source: Retailing Today

Costco Sales Rise In Fourth Quarter

October 8, 2014

Costco reported a rise in sales and same-store sales for the fourth quarter.

Net sales for the quarter were $34.75 billion, an increase of 9% from $31.77 billion in fiscal 2013.  Same-store sales for the total company increased 6%, while U.S. same-store sales also rose 6%.

Net income for the quarter was $697 million, or $1.58 per diluted share, compared with $617 million, or $1.40 per diluted share, in the year-ago period.

Fiscal year 2014 sales totaled $110.21 billion, an increase of 7%.  Same-store sales increased 4% for the company and 5% in the United States.

Net income for the fiscal year was $2.06 billion, or $4.65 per diluted share, compared with $2.04 billion, or $4.63 per diluted share, in fiscal year 2013.  Net income last year was positively impacted by a $62 million tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the company 401(k) plan participants.

Source: Retailing Today

Costco To Open Nine Stores By End Of 2014

September 4, 2014

Costco said it plans to open nine new warehouse stores before the end of calendar year 2014, following a boost in net sales for August and the fourth quarter.

During the month of August, net sales were $8.8 billion, an increase of 10% from $8 billion during the similar period last year.  Same-store sales in the United States increased 7%.

For the 16 week fourth quarter, the company reported net sales of $34.8 billion, an increase of 9% from $31.8 billion in the year-ago period.  Same-store sales in the United States increased 6%.

For the 52 week fiscal year ended August 31, Costco reported net sales of $110.2 billion, an increase of 7% compared with the year-ago period.  U.S. same-store sales rose 5%.

Source: Retailing Today

Costco Sales Get Boost In July

August 7, 2014

Costco saw a boost in net sales and same-store sales during the month of July.

Net sales totaled $8.55 billion for the four weeks ended August 3, an increase of 9% from $7.87 billion during the similar four-week period last year.

Same-store sales increased 5%, while U.S. same-store sales also increased 5% during the period.

For the 48 weeks ended August 3, net sales were $101.43 billion, an increase of 7%.  During the 48 weeks, same-store sales increased 4%.  In the United States, same-store sales rose 5%.  Costco currently operates 660 warehouses, including 466 in the United States and Puerto Rico, 88 in Canada, 33 in Mexico, 25 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, six in Australia and one in Spain.

The company plans to open up to an additional three new warehouses prior to the end of its fiscal year on August 31.

Source: Retailing Today

Costco Beats Expectations In May

June 5, 2014

Warmer weather in May meant an uptick in store traffic for a few retailers, including Costco.  But the wholesale retailer's same-store sales for the month - which increased 6%, with a 6% rise in U.S. sales and a 4% increase in international sales -  were better than analysts had expected and bolstered by higher fuel prices.

The company reported net sales of $8.78 billion for the month, an increase of 8% from $8.13 billion during the similar four-week period last year.

In the United States, same-store sales increased 6%.  Total company same-store sales also increased 6%.

For the 39 weeks ended June 1, the company reported net sales of $81.99 billion, an increase of 6% from $77.13 billion during the similar period last year.

Source: Retailing Today

Costco Misses Estimates Although Sales Solid

May 29, 2014

Solid sales growth at Costco during the second quarter and a 6% same store sales increase at U.S. clubs did not translate into strong profits for the warehouse club operator whose earnings fell shy of analysts' estimates.

Costco's worldwide revenues for the 12 week period ended May 11 increased 7.1% to nearly $25.8 billion and consisted of product sales that increased 7.1% to slightly more than $25.2 billion and membership revenue which rose 5.6% to $561 million.  Total company same store sales increased 4% and consisted of a 5% U.S. comp increase and a 3% international increase.  Both figures were negatively affected by lower gasoline prices and foreign exchange.  U.S. comps increased 6% excluding the negative effects of gas prices and international comps increased 8% on a constant currency basis.

Costco saw its profits increase 3% to $473 million, or $1.07 a share, from $459 million, or $1.04 a share.  The consensus among analysts was that Costco would earn $1.09 a share.

Costco ended its second quarter with a total of 655 warehouses worldwide, including 464 locations in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 19 in Japan, 10 in Taiwan, 10 in Korea, six in Australia, and one in Spain.  The company plans to open as many as eight new warehouses during the second half of its fiscal year.

Source: Retailing Today

Costco April Sales Beat Analysts' Expectations

May 8, 2014

The timing of Easter this year left Costco with 27 days of sales in April, rather than last year's 28.  But despite the Easter holiday shift, Costco still came out on top with a 7% increase in net sales that reportedly beat analysts' expectations.

The company reported net sales of $8.56 billion for the month, up from $7.98 billion during the similar four-week period last year.  Although Easter's timing this year did negatively impact this year's net and comparable sales by an estimated 1.5 to 2%, inflation in gasoline prices had a positive impact on comparable sales for the four-week period.

Total comparable sales increased 5%, U.S. comparable sales rose 5% and international comparable sales rose 2%.

Excludig gasoline prices and the negative impact of foreign currencies, total comparable sales rose 5%, U.S. comparable sales rose 5% and international comparable sales rose 7%.

Costco plans to report its third quarter results May 29.  It currently operates 652 warehouses, including 463 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 19 in Japan, 10 in Taiwan, 10 in Korea and five in Australia.  Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

Source: Retailing Today

Kroger And Costco Outshine Walmart

March 6, 2014

Walmart didn't mention competitive issues as a source of sales weakness during its fourth quarter, but reports this week from Kroger and Costco indicate they were at least a contributing factor.

This was especially true in the case of Costco.  Recall that Sam's reported a same store sales decline of 0.1% during the fourth quarter ended January 31, after a 1.8% gain the prior year.  Operating income fell 15.3% to $425 million.  At the time, Sam's president and CEO Rosalind Brewer said the underlying health of the Sam's Club business was sound and that restructering efforts, including the elimination of 2,300 positions from club operations were allowing Sam's to be more agile and focused on growth opportunities.

"The stragegies we have in place will deliver value for our members, helping to grow the business and drive strong financial performance in fiscal year 2015," Brewer said.

Sam's expects its same store sales for the first quarter ending May 2 to be relatively flat following a 0.2% gain last year.

Conversely, Costco grew its U.S. same store sales, excluding fuel by 5% during its second quarter ended February 16.  Sam's fourth quarter and Costco's second quarter don't totally match up, but both companies' reporting periods included the holiday season.  It was evident from Costco's results and comments from CFO Richard Galanti that Costco went hard after price at the expense of profitability during the shortened and weather impacted holiday season.

For example, despite the 5% domestic comp increase, Costco's net income declined to $463 million, or $1.05 a share, compared to $547 million, or $1.24 a share, during the second quarter the prior year.  Comparisons to the prior year were made more difficult because the period included a 14 cent a share one time tax benefit related to a portion of a special cash dividend the company paid in December 2012 to 401k plan participants.

"Even with that distinction, however, the year-over-year comparison was unfavorable," Galanti said.

Contributing to profit pressures at Costco were weaker sales and gross margin results in certain non-foods merchandise categories, particularly during the four-week holiday selling season, weaker gross margins in the fresh foods business and lower reported international profits resulting from the significant weakening of foreign exchange rates, according to Galanti.

"The first four-week period of the quarter represented the majority of earnings underperformance in the quarter," Galanti said.  Costco's second quarter began on November 25, 2013 and encompassed the Thanksgiving weekend which fell late last year and compressed the holiday season.

While Costco was outcomping Sam's, Kroger was doing the same to Walmart and made no mention of bad weather or food stamp reductions in its earnings release.  Kroger reported a 4.3% increase in identical store sales, excluding fuel, and said it expects first quarter comps to rise between 2.5% and 3.5% against a backdrop of minimal inflation.

Walmart reported a 0.4% decline in same store sales at U.S. stores following a 0.3% increase last year.  Looking forward, Walmart's forecast for first quarter same store sales is flat compared to a prior year decline of 1.4%.

Source: Retailing Today

Sales Solid, But Holidays Pressured Profits At Costco

March 6, 2014

In the sales versus margins battle at Costco, sales got the upper hand during the holiday season and the company's second quarter, ended February 16.

Costco managed to grow sales by 5.8% to $25.76 billion and same-store sales, excluding fuel, at U.S. clubs rose a healthy 5%.  However, in a shortened and intensely priced competitive holiday season impacted by severe winter weather, Costco sacrificed margin to maintain member satisfaction, which was evident in membership free income that grew 4.2% to $550 million.  The tradeoff between sales and margins was evident in the company's bottom line as net income declined to $463 million, or $1.05 a share, compared to $547 million, or $1.24 a share, during the second quarter the prior year.  Comparisons to the prior year were made more difficult because the period included a 14-cents-a-share one time tax benefit related to a portion of a special cash dividend the company paid in December 2012 to 401k plan participants.

"Even with that distinction, however, the year-over-year comparison was unfavorable," said Costco CFO Richard Galanti.  "Despite satisfactory sales results during the second fiscal quarter, several other factors led to lower earnings.  The first four-week period of the fourth quarter represented the majority of earnings underperformance in the quarter," Galanti said.

Costco's second quarter began November 25, 2013 and encompassed the Thanksgiving weekend, which fell late last year and compressed the holiday season.

Total company same-store sales during the quarter, excluding fuel and the effects of foreign currency, increased 5% and consisted of a 7% gain internationally and a 5% domestic increase.

Costco ended the period with 649 stores, consisting of 462 locations in the U.S. and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, 9 in Korea and 5 in Australia.  The company plans to open as many as 14 new stores before the end of its fiscal year August 31, 2014.

Source: Retailing Today