Costco sales are up 15% in last quarter

Comparable store sales, in stores or digital channels with a minimum of 12 months of operation, increased by 12.9% in the February quarter, excluding the impact of gasoline sales and currency movements. The retailer’s e-commerce sales were up 74.8% from the previous year as adjusted.

Average ticket size was up 11.9% across the company.

The company experienced some supply chain challenges in the quarter related to container shortages and port delays, leading to delays in furniture, sporting goods and miscellaneous items such as seafood, imported cheeses and oils.

“We expect this pressure to ease in the coming months, but it affects everyone,” said Chief Financial Officer Richard Galanti during a phone call with analysts on Thursday. Cost to the company per sea container has gone up 10% to 15%, Mr. Galanti estimated during the phone call.

Overall, the company said it had some pressure to keep shelves stocked with electronics, such as TVs, computers, and smart home devices due to a shortage of chips, and canned drinks due to a shortage of aluminum.

The quarter’s results include a strong period in December. The company’s net sales for the five-week period ended January 3 were up 12% to $ 19.14 billion from a year ago.

Big box retailers, including Walmart Inc.

and Target Corp.

TGT -2.18%

have generally fared well amid the coronavirus crisis, selling items that pandemic-weary buyers are increasingly buying, such as food and household items. In general, large retailers and grocers have remained open during the pandemic, avoiding early closures.

Costco posted a profit of $ 951 million, or $ 2.14 a share, for the quarter, compared to $ 931 million, or $ 2.10 a share, in the comparable period last year. Analysts were aiming for $ 2.45 per share. This included $ 246 million in pre-tax costs, mainly related to premium wages paid during the Covid-19 pandemic.

For the quarter, the company reported selling, general and administrative expenses of $ 4.34 billion, up 16% from a year earlier.

The company increased its pay for its US employees to at least $ 16 an hour as of this month. Costco has long paid its store employees more than most competitors, in part to cut sales as part of its low-cost business model. The minimum wage in the US was $ 15 an hour, the same as the starting wage at Amazon.com Inc.

and Target. Costco has approximately 180,000 full-time and part-time American employees.

Costco said it spent about $ 1.1 billion on Covid-19-related expenses between March last year and February this year, with the majority going toward a $ 2-hourly wage increase for store employees, Mr. Galanti. Going forward, with the permanent pay rise, the costs will drop from about $ 1 billion to about $ 500 million for the current year, he said.

Write to Kimberly Chin at [email protected]