In-Store Shopping Drives up Costco Earnings

Retail chain Costco’s quarterly results for Q1 2022, released Thursday (Dec. 9), were better than initially expected, with quarterly revenue rising 16.6% in the quarter ending Nov. 21 for a total of $50.36 billion.

That was ahead of the estimates of $49.60 billion. According to Costco’s release, the company net income was $1.32 billion, up from $1.16 billion last year.

Reuters has reported that supply chain issues, including still-congested ports and a truck driver shortage, have caused delays in things like toys and other seasonal items.

Costco CFO Richard Galanti said some inventory “won’t make it before Christmas,” and that the company has tried to deal with that the best that it can.

Many retailers have had to scramble to meet demand for the holidays, with Reuters noting that these retailers have been employing strategies like using air freight and ordering products far ahead of time.

At the same time, consumers have been going back to brick-and-mortar stores, with more vaccines and less COVID-19 restrictions. Costco offers a variety of products, from jewelry to bulk groceries, and the company’s business model supports an in-warehouse shopping experience.

However, Costco was one of the companies who fell victim to potential data leaks this year, with the company informing customers in November that their payment information might’ve been taken through a credit card skimmer at one of the stores.

The company located the skimming device during a routine personnel check, removing the device and alerting law enforcement. PYMNTS writes that customers might have had their data stolen if the fraudsters had gained access before the device was removed.

Because of that, Costco said customers should keep an eye on bank and credit card statements for unexpected changes they didn’t make, and said they should report unauthorized activity.

See also: Credit Card Skimmer Leads to Costco Data Breach