Costco profits driven by international expansion
The opening of Costco, in Australia in August last year has contributed to the world’s ninth largest retailer 25% jump in quarterly profits, with sales gains driven by international expansion.
The American-based retailer for the second quarter, ended 14 February, posted net profit of $330m (US$299m), up from $264m (US$239m) last year.
Revenues gained 11%, climbing to $20.7bn (US$18.74bn) from $18.6bn ($16.84bn) last year.
Sales at stores open at least a year rose 3% during the period, Costco said.
International sales growth was more than the company’s domestic market. US same-store sales increased 2 per cent while international identical sales rose 10 per cent.
Costco in Australia is just one of 566 warehouses worldwide, including 413 in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan, and 32 in Mexico.