Costco Q4 FY2021 Earnings Report: Revenue Soars 17.4%, EPS Up 20.1% - Key Insights
Explore Costco's impressive Q4 FY2021 financial results, with revenue and earnings surpassing analyst expectations. Learn about comparable sales growth and e-commerce performance.
Costco Wholesale Corp. (COST) delivered a strong Q4 FY2021 performance, exceeding market expectations in both earnings and revenue.
Highlights
- Comparable sales grew 15.5%, slightly slower than the previous quarter but still surpassing analyst predictions.
- Costco’s comparable sales metric measures revenue growth from warehouses and e-commerce platforms operational for over a year.
- E-commerce sales increased by 11.2% year-over-year, reflecting robust online demand.
Source: Analyst consensus data from Visible Alpha
In-Depth Financial Analysis of Costco (COST)
Costco’s Q4 FY2021 earnings per share (EPS) rose 20.1% year-over-year, beating analyst forecasts. Revenue climbed 17.4% compared to the same quarter last year, driven by strong sales across both physical stores and digital channels. The company’s stock responded positively, gaining nearly 1% in after-hours trading. Over the past 12 months, Costco’s shares have returned 35.9%, closely tracking the S&P 500’s 37.5% total return.
Understanding Costco’s Comparable Sales Growth
The 15.5% increase in comparable sales marks the second-highest quarterly growth in the last four years, despite a slight slowdown from the previous quarter. Costco defines comparable sales as net sales from membership warehouses—including relocations, remodels, and expansions—and e-commerce sites operating for more than one year. Growth in this metric indicates rising shopping frequency and higher spending per visit among both new and existing members. It also suggests that existing stores have not yet reached market saturation, and new store openings have not cannibalized sales.
Costco’s upcoming Q1 FY2022 earnings report is anticipated on December 8, 2021.
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