Costco Wholesale Corp. posted second-quarter earnings that beat Street estimates as it joined other retailers in noting softening discretionary sales.
In the company’s earnings call, CFO Richard Galenti noted that, during the second quarter, Costco opened three new warehouses, two in the US and one in Australia. Next week, it will open its third location in China, with two additional outposts scheduled to open in the fourth quarter.
Costco expects to open 24 new warehouses in its current fiscal year, which includes 14 US locations. In addition to China, Costco’s new international will include its first-ever stores in New Zealand and Sweden, both of which opened during its first quarter. Galenti told investors that the company estimates that its fiscal 2023 capital spend remains in the range of $3.8bn to $4.2bn.
