US discount retailer Costco has reported a rise in sales in its home market for the first quarter of its 2009 financial year, offsetting a decline internationally.
Net income rose 0.2 per cent for the three months to November 23, up from US$262 million to US$262.5 million (£171.5 million to£171.8 million).
Like-for-like sales rose 3 per cent in the US and fell 7 per cent at its overseas operation. Total sales grew 4 per cent to US$16.04 billion (£10.5 billion).
Costco chief financial officer Richard Galanti said the first- quarter sales benefited from strong profitability in petrol compared with last year. He added: “Results were hurt by a slowdown in non-food discretionary sales.”
Galanti added that international sales were also negatively affected by foreign exchange, resulting from the strengthening of the US dollar compared with currencies in Canada, the UK, Korea and Mexico.
Costco is understood to be mulling a move into further markets, with a view to doubling its international business within 10 to 15 years. The retailer is considering entering France, Spain, India and Australia. In the longer term it may also consider entering China.
Costco is a club-based retailer, where shoppers are required to pay to become members. It has outlets in the US, UK, Canada, Japan, South Korea, Taiwan and Mexico.
Like-for-like sales rose 3 per cent in the US and fell 7 per cent at its overseas operation. Total sales grew 4 per cent to US$16.04 billion (£10.5 billion).
Costco chief financial officer Richard Galanti said the first- quarter sales benefited from strong profitability in petrol compared with last year. He added: “Results were hurt by a slowdown in non-food discretionary sales.”
Galanti added that international sales were also negatively affected by foreign exchange, resulting from the strengthening of the US dollar compared with currencies in Canada, the UK, Korea and Mexico.
Costco is understood to be mulling a move into further markets, with a view to doubling its international business within 10 to 15 years. The retailer is considering entering France, Spain, India and Australia. In the longer term it may also consider entering China.
Costco is a club-based retailer, where shoppers are required to pay to become members. It has outlets in the US, UK, Canada, Japan, South Korea, Taiwan and Mexico.
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