Costco Wholesale Exceeds Wall Street Expectations for Same Store Sales
Good news for Costco Wholesale – the big box store chain is continuing to prove that strong revenue and strong employee support are not mutually exclusive. Costco sales at stores that have been open for more than a year rose 6 percent in May 2014, meeting and exceeding Wall Street’s expectations.
According to Associated Press reports, Wall Street analysts responded to a Thomson Reuters poll with the expectation of a 4.8 percent growth rate for Costco Wholesale stores within the United States. But Costco outshone the predictions with 6 percent growth over the four-week period ending June 1, adding up to total revenue growth of $8.78 billion within the time period. Outside of the United States, sales rose 7 percent when adjusting for fluctuating gas prices and currency exchange rates.
As we enter June, it’s a good time to be looking at businesses and their revenue progress for the year. At the halfway point, business is looking good for Costco Wholesale – sales at those same stores (open for more than a year) have risen 4 percent in the US and 7 percent overseas for the year to date. Revenue has also risen 6 percent, bringing $81.99 billion into the Costco Wholesale business.
Costco Wholesale’s growth is impressive in its own right, and even more impressive considering the brand’s commitment to paying its employees well above minimum wage and providing benefits like healthcare. If this growth continues, that may help to turn the tides on corporate sentiment and pave the way for more businesses providing the same to their teams.