Please ensure Javascript is enabled for purposes of website accessibility

Costco's E-Commerce Sales Were Up Over 100% in May

By Jennifer Saibil – Jun 4, 2020 at 12:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After a disappointing April, the big box retailer rocked May sales.

April was a tough month for retailing giant Costco (COST -1.40%). After achieving March highs while customers stocked up for the coronavirus pandemic, Costco saw April sales decrease for the first time in 10 years as people stayed home and the company had to close some departments in accordance with government regulations. However, May sales bounced back big, with a 7.5% increase in sales year over year to $12.55 billion.

E-commerce came through

Costco, unlike most publicly traded companies, releases monthly earnings reports. The May earnings report included the four weeks ended May 31. Although it was solid all around, Costco saw a 105% increase in e-commerce, which is crucial for the company as it competes with the likes of Walmart and Target, who are both succeeding in that area.

Couple putting a box into their car.

Image source: Getty Images.

In the company's third quarter, which ended May 10, e-commerce comps increased 64.5%, which was lower than Walmart's 74% increase and Target's 141% increase during a similar time period.

But customers are still coming in

U.S. comps increased 5.5% and total comps excluding gas price declines and currency exchange was 9.7%. In the third quarter, e-commerce sales were only 8% of total sales, so while the increase bodes well for Costco's ability to convert customers to digital patrons, the retailer is still maximizing its in-store business. 

Costco stock has stayed fairly steady through the pandemic and is up 4.3% year to date. Shares rose in trading based on the May results.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Costco Wholesale Corporation Stock Quote
Costco Wholesale Corporation
COST
$472.27 (-1.40%) $-6.71
Walmart Stock Quote
Walmart
WMT
$129.70 (-1.93%) $-2.55
Target Corporation Stock Quote
Target Corporation
TGT
$148.39 (-2.24%) $-3.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.