Costco 1st quarter of 2024 ended with comparable store sales increase of 3.8% or adjusted sales increase of 3.9% in the period. Total sales increased 6.1% or $56.72 billion compared with $53.44 billion in fiscal 2023.
Net income for the quarter was $1,589 or 3.58 per diluted share compared to $1,364 or $3.07 per diluted share. This year the company issued $44 million (or $0.10 per diluted shares) of stock-based compensation, while last year the company had a charge $93 million (or $0,15 per diluted shares) related to downsizing the charter shipping activities.
Net sales benefitted by about one-half to one percent in the U.S. and word-wide from the shift in the fiscal calendar, as a result of the fifty-third week in 2023.
The company also announced a special cash dividend of $15.00 a share on Costco common stock payable January 12, 2024 for holders on record at the close of business December 28, 2023. The total amount of this dividend is about $6.7 Billion.
Costco currently operates 871 warehouses, including 600 in the United States and Puerto Rico, 108 in Canada. and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 I the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, 5 in China, 4 in Spain, 2 in France, and 1 each in Iceland, New Zeeland, and Sweden. The company also operates e-commerce sites in the U.S., Mexico, Korea, Taiwan, Japan and Australia.
POSTSCRIPT: The special dividend is the 4th in 7 years. Investors now expect the special dividend. The company saw low inflation pressure, saying that they see 0% to 1% inflation in their merchandise, and they see little inflationary pressure in the coming year. That is good news for the economy. The company also announced the opening of 9 new stores and one relocation. One of the stores will be in China. It with be the 6th warehouse in that country.