(AOF) – The Costco warehouse format distribution group presented profitability under pressure in the first quarter. In the third quarter, which ended in early May, net income was $1.35 billion, or $3.04 per share, from $1.22 billion, or $2.75 per share. Excluding exceptional items, earnings per share came out at 3.17 dollars, or 14 cents better than the consensus. The gross margin fell by 100 basis points to 10.2% whereas it was expected to fall by 20 points. It was penalized by the rise in labor and freight costs.
Sales increased by 16.2% to 52.6 billion dollars – including 984 million dollars (+9.2%) for contributions paid by members – where the market anticipated 51.71 billion dollars. They increased by 10.8% like-for-like and excluding petrol.
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City center stores: a worrying drop in footfall
Between 2013 and 2021, footfall in stores in city centers fell by almost 40%. This drop reached 29.4% for shopping centers over the same period. Procos emphasizes that this movement results in particular from the multiplication of the offer and the development of e-commerce. Small town centers and mega-malls are the most resilient. The former respond to local needs and the latter exert a force of attraction on a regional scale. With the Assises du commerce in December 2021, the government launched three weeks of reflection to outline a vision for 2030 and support the investments necessary for digital and environmental transitions.