Costco Comp Store Sales Up 9%

Costco Wholesale Corporation (COST: 59.28 -0.43 -0.72%), one of the leading U.S. warehouse club operators, reported December sales of $8.26 billion, up 11% from $7.41 billion in the year-ago period.

Total comparable store sales for the 5-week period ended January 3 were up 9%. Costco posted a 5% comparable store growth in the U.S. and 25% in the International markets. This included a positive impact of rising gasoline prices and a weaker U.S. dollar.

Excluding the above effects, Costco’s comparable store sales in the reported period were up 4%, with 2% growth in the U.S. and 10% growth in the International markets.

For the 18-week period ended January 3, Costco reported net sales of $26.83 billion, reflecting a year-over-year growth of 8%. Comparable store sales were up 5%, with the company posting 2% growth in the U.S. and 17% growth in its international operations.

Excluding the impact of foreign currency translation and gasoline prices, the 18-week period comparable store sales were up 3%. U.S. markets saw growth of 2%, while international market growth was 8%.

Costco currently operates 566 warehouses, including 413 in the United States and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the United Kingdom, 9 in Japan, 7 in Korea, 6 in Taiwan and 1 in Australia. Over the past few years, the company has been focusing on increasing its presence in the existing markets through continuous investments in new club openings.

Costco faces stiff competition from BJ’s Wholesale Club Inc. (BJ: 33.24 -0.53 -1.57%) and Sam’s Club, a division of Wal-Mart Stores Inc. (WMT: 53.33 -0.27 -0.50%).