Fourth Quarter Highlights and CEO Insights
During the 17-week fourth quarter of fiscal year 2023, Costco reported net sales of $77.43 billion, representing a substantial 9.4% increase from the previous year. CEO remarks emphasized the strategic focus of the company, stating, "We're pleased with the strong growth in our fourth-quarter sales, which is a testament to our commitment to delivering value to our members."
Comparable sales figures highlighted the following:
U.S.: 0.2%
Canada: 1.8%
Other International: 5.5%
Total Company: 1.1%
E-commerce: -0.8%
Galanti acknowledged the global challenges and noted, "While we faced headwinds in certain areas, our international and e-commerce segments delivered strong results."
Membership Growth and Expansion
Costco continues to experience membership growth, closing the fiscal year with 71.0 million paid household members and 127.9 million cardholders. The CEO's remarks underscored the significance of this growth: "Our members are at the core of our business, and we're proud to see our membership base expand."
In terms of expansion, the company opened nine net new warehouses in the fourth quarter and a total of 23 net new units for the fiscal year. The CEO added, "Our expansion strategy remains robust, with plans to open 10 net new units in the first quarter of fiscal year 2024."
E-commerce and Digital Transformation
In regards to transformation, the CEO stated, "We've made substantial progress in our digital transformation efforts." Recent enhancements include a redesigned account page, digital membership cards, and a more user-friendly mobile app. The CEO emphasized the positive feedback received, with the app's store rating rising from 2.3 stars to an impressive 4.7 stars.
Monitoring Inflation Trends
Costco has closely monitored inflation trends throughout the fiscal year. The CEO shared insights, saying, "We've observed inflation trends with diligence." While the third quarter of 2023 saw inflation estimated at 3% to 4%, the fourth quarter estimate is in the range of 1% to 2%, with a downward trend. The CEO expressed cautious optimism, saying, "We hope these inflation trends continue favorably."