Most Costco Import Containers Averaging 51 Days Late: CFO
Costco faced “similar issues” in its supply chain for fiscal Q1 ended Nov. 21 as in its previous quarter, said Chief Financial Officer Richard Galanti on an investor call Thursday. “We feel we've dealt pretty well with the supply chain…
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challenges in terms of delayed container arrivals on the Pacific Coast," he said. "About 79% of our import containers are late by an average of 51 days.” Virtually all Costco departments are affected, he said. Despite all the supply chain challenges, he said, "our buyers have done a very good job of keeping the warehouses full.” Year-over-year inflationary trends are averaging in the “5% range,” but TVs are “going down in price, maybe a little less” this year, because of fewer promotions amid the product and component shortages, said Galanti. Revenue for the quarter in Costco’s largest merchandise department, including TVs and other consumer tech goods, was up by “high-single digits,” despite the tough comparison with “a very strong sales increase a year earlier,” said Galanti.