Costco Wholesale Corp. is on track to generate web sales of at least $1.6 billion in fiscal 2008, an increase of about 33% from web sales of $1.2 billion in fiscal 2007.
Though the retailer didn’t break out specific numbers, e-commerce revenue also grew by about 24% in the third quarter, chief financial officer Richard Galanti told analysts on Costco’s recent earnings call. “Costco.com continues to do well at a 24% sales increase in the third quarter and we should exceed $1.6 billion for the year,” Galanti told analysts. “That 24% is down from the first two quarters, but given the fact that you’ve got a huge penetration of big-ticket furniture and electronics items, we think that’s still a fairly decent number.”
Overall Costco, No. 18 in the Internet Retailer Top 500 Guide, reported net income of $295.1 million on revenue of $16.6 billion for the third quarter ended May 11, compared with net income of $224 million on revenue of $14.7 billion in the same quarter in the prior year.
Sales of bigger-ticket items such as furniture and consumer electronics are helping Costco.com generate a consistent average web order of at least $400, Galanti told analysts. “Our average ticket has been in the low 400s, between $425 and $440,” he said. “In the last couple of quarters, it’s come down slightly.”
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