As some apparel merchants struggle, Costco is finding greater choice of branded merchandise for its own stores, said Richard A. Galanti, executive VP and CFO. And a slowdown in store growth by other companies also may provide new locations.
"Our nonfood buyers are seeing more availability in branded jeans and women's apparel, and even on the home furnishings side," Galanti said. "[And] we're seeing more [real estate] opportunities of late as some retailers have dropped out of sites and some tracts of land have flipped back to the bank."
The company plans to open an additional 16 to 18 new warehouses (including relocating of four to five units) for a total of 28 net new units at year-end.
Net sales for the quarter increased 12% from the previous year to $16.62 billion. Comparable-store sales rose 7% with a 5% increase in the US (boosted by higher gas prices) and 17% international rise. Net income was $327.9 million, compared with $249.5 million the previous year.
Costco operates 534 warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Korea, Taiwan, Japan and Mexico.
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