Comparable Store Sales 2

Year over Year Sales: Unlocking the Power of Same Store Sales

It recently traded at a price-to-earnings (P/E) ratio of about 27 and a forward P/E of just under 26, based on analysts’ estimates for next year. In conjunction with the quarterly report, Comparable Store Sales management adjusted its full-year same-store sales guidance. The retailer now anticipates same-store sales to decline by 2.5%, an improvement from the prior outlook for a decline of between 3% to 4%. Management said the updated guidance reflected its solid Q3 results as well as incremental hurricane-related sales. Unlike past quarters, though, the company saw a number of categories post comp sales growth, including paint, power, outdoor garden, building materials, and indoor garden.

Second quarter 2025 effective income tax rate was 23.2 percent, compared with the prior year rate of 22.9 percent, reflecting the impact of higher global minimum taxes. Company financial reports, press releases, and financial news websites are good sources for comp sales data. Economic conditions, seasonality, promotional activities, marketing campaigns, competition, product trends, and weather can all influence comp sales. While the percentage change in comp sales is important, it’s also essential to look at the absolute dollar value of the change.

Strategies to Increase Same-Store Sales

As a result, Costco’s net sales for May increased 6.8% to $20.97 billion, up from $19.64 billion in the same period last year. While May’s results don’t promise a spectacular quarter, they point to good progress so far. However, it is to be seen how the company navigates volatile macro headwinds and tariff complexities in the final stretch of fiscal 2025. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of liquidity or free cash flow for management’s discretionary use.

How do u calculate sales?

This highlights the surge in demand for essential goods and bulk purchases as consumers sought value and convenience during uncertain times. Adjusted figures from this period provide a more accurate reflection of Costco’s operational success, demonstrating its ability to sustain growth in a challenging environment. In fiscal year 2024, Costco’s total company comparable sales rose to 6%, compared to the unadjusted figure of 5%. Similarly, the U.S. comparable sales, excluding the effects of foreign exchange and gasoline prices, reached 5%, representing a notable improvement of 1 percentage point over the pre-adjusted results. The Canada and International segments also posted adjusted comparable sales of 8% each in fiscal year 2024, outperforming their respective pre-adjusted figures. Excluding the impact of foreign exchange and gasoline prices, Costco’s comparable sales showcased a stronger performance, highlighting the company’s underlying operational strength and consumer demand.

If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Securities and Exchange Commission, including under the heading “Risk Factors” in our most recent Annual Report on Form 10-K. For each of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. This example shows how you would calculate the change in comparable store sales from one year to the previous year.

Q1 Financial highlights

As part of these efforts, our European brands have set a consolidated target, aiming for 50% plant-based food sales by 2030. Review your sales data on a monthly, quarterly, and yearly basis to spot trends such as seasonal fluctuations or changing customer preferences. Depending on your business’s momentum and plans for expansion, you may want to review sales data on a weekly basis, too.

Target says its holiday sales were better than expected — but its profits weren’t

During the Target Q earnings call yesterday, Cornell noted the digital growth seen in Q1 was primarily driven by Target’s same-day delivery services. Adjusted SG&A is defined as SG&A less product sourcing costs, favorable lease costs and amounts related to certain litigation matters. “But the sales before the week and the sales after the week were lower. There was a dip in sales. The consumer was being very intentional.” “Even though consumers are still relatively healthy and there was a notable increase in spending, they remain budget conscious,” he said. Nordstrom on Friday bumped up its full-year sales forecast, but only after a conservative prior outlook.

This is a number often reported on a retail chain’s annual report or quarterly earnings calls. Same-store sales may also indicate the effectiveness of management within a specific location. The company may evaluate how successful certain managers are in generating revenue growth from existing assets. They may use this to investigate opportunities for improvement in stores that are struggling, and they may begin by understanding what works well in other stores.

Improve Marketing and Promotions

Comparable store sales refer to period-over-period comparisons of our net sales at the time of sale among the comparable store base. Changes in our comparable store sales between two periods are based on net sales at the time of sale for stores that were in operation during both of the two periods. Sales through our Spartan Surfaces, LLC (“Spartan”) subsidiary do not involve our stores and are therefore excluded from the comparable store sales calculation. Earnings before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation and amortization (EBITDA) are non-GAAP financial measures. We believe these measures provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and, for EBITDA, capital investment.

Target Corporation Reports Second Quarter Earnings

And yet, with all this change, Retail remains a simple business that focuses on the customer experience and is driven by metrics. The coming year will present a unique opportunity for Retailers to establish a new baseline from which to set goals and measure performance in the future. While these changes in customer behavior won’t limit a retailer’s ability to achieve 2019 sales volumes, they will have a significant impact on 4-wall performance.

• This information is essential for companies to understand if they are meeting their goals and objectives effectively.
• EBITDA and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
• Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
• Net sales represent the bulk of Costco’s revenue, as the company operates on a membership-based wholesale model, offering competitive pricing to its members by maintaining low margins and high sales volume.
• Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases was owned or accounted for under finance leases.
• A negative number shows declining same-store sales, while a positive number shows increasing same-store sales.

This method utilizes the equivalent figures that are comparable to evaluate the percentage of change and the performance of a part, a store, or an outlet of an organization. In the above example, we can evaluate that the figures of the same outlet have been compared with the figures of the same period in both the fiscal years, which makes it more favorable an equivalent comparison. Same store sales is a valuable tool for retailers to use when analyzing sales performance.

• The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8% and 12%, respectively.
• When used wisely, modern technology streamlines operations, enriches customers’ experiences, and drives repeat business.
• Comparable store sales, also known as same-store sales, represent a crucial metric for evaluating a retailer’s financial health and operational efficiency.

What are Same-Store Sales? 7 Strategies to Increase Revenue

As illustrated in the chart, Costco achieved its strongest comparable sales performance during the fiscal years 2021 and 2022, coinciding with the COVID-19 pandemic. During this period, consumer behavior significantly shifted, with increased demand for essential goods and bulk purchases. However, in the years following the pandemic, the company’s comparable sales have demonstrated more normalized growth rates.