Costco Wholesale Corporation Reports July Sales Results

Publishers who still mail print editions to subscribers are facing challenges on at least a couple of fronts. For one, new statistics released by the U.S Postal Service show that 86.1% of Periodicals were delivered on time against the USPS service standard in Q4, a decrease of 2.8% from the prior quarter. In contrast, 91.4% of first class mail was delivered on time, a 1.2% decrease, and marketing mail held steady with a 95.2% on-time delivery rate. This may or may not have any real impact. But in a related development, U.S. Senator Amy Klobuchar (D-MN) is speaking out against recent postal policy changes that she says are hurting local and rural newspapers.

For the Three Months Ended July 3, 2021: Net sales increased 45% to $357.7 million, compared to $246.9 million during the same period last year. *Direct-to-consumer (“DTC”) channel net sales increased 48% to $196.9 million, compared to $133.0 million in the prior year quarter, driven by strong performance in both Drinkware and Coolers & Equipment. The DTC channel grew to 55% of net sales, compared to 54% in the prior year period. *Wholesale channel net sales increased 41% to $160.8 million, compared to $113.9 million in the same period last year, driven by both Drinkware and Coolers & Equipment. In the second quarter of 2020, wholesale channel net sales were adversely impacted by the temporary store closures due to COVID-19. *Drinkware net sales increased 69% to $192.9 million, compared to $114.3 million in the prior year quarter, primarily driven by the continued expansion of our Drinkware product offerings, including the introduction of new colorways and sizes, and strong demand for customization. *Coolers & Equipment net sales increased 23% to $157.8 million, compared to $128.6 million in the same period last year, driven by strong performance in soft coolers, bags, outdoor living products, cargo and hard coolers. Gross profit increased 52% to $209.1 million, or 58.5% of net sales, compared to $137.5 million, or 55.7% of net sales, in the second quarter of 2020.

FY23 second quarter service performance scores covering Jan. 1 through Feb. 17 included: *First-Class Mail: 91.0% of First-Class Mail delivered on time against the USPS service standard, consistent with performance from the fiscal first quarter. *Marketing Mail: 94.4% of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal first quarter. *Periodicals: 86.1% of Periodicals delivered on time against the USPS service standard, an increase of 1.5 percentage points from the fiscal first quarter.