Costco Wholesale Corporation (NASDAQ:COST) shares fell after the big box retailer reported its first monthly decline in same-store sales in nearly three years.
The company said in a statement that its total same-store sales fell 1.1% in the retail month of March, being the five weeks that ended April 2, 2023, down from increases of 3.5% and 5.6% in February and January, respectively.
During March, Costco’s same-store sales declined 2.4% in Canada and 1.5% in the US, but grew 2% in other international locations. Its eCommerce sales also fell 12.7% during the month.
Total net sales for March were $21.71 billion, an increase of 0.5% from $21.61 billion in the year-ago period. This was a sharp decline from the 4.7% and 6.9% growth in net sales posted in February and January.
For the 31 weeks ended April 2, 2023, Costco’s total same-store sales were up 4.5%. For the same period, its eCommerce sales declined by 7.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, Costco’s comparable sales grew 2.6% in March and 6.1% in the 31 weeks to April 2, 2023.
Costco’s assistant vice president of finance and investor relations Josh Dahmen noted in pre-recorded remarks that FX and gas price deflation impacted Costco's sales during March.
“Year-over-year inflation for food and sundries and fresh foods were both down from February,” he said.
Costco shares were trading down 3.2% at US$481.40 on Thursday morning.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie