(Bloomberg) — Costco Wholesale Corp.’s finance chief said he’s pleased with the company’s ability to keep its shelves stocked despite shipping snarls that are delaying the delivery of some products.
The retailer’s relatively narrow product selection gives it an advantage in keeping items in stock compared with companies that sell a wider variety of goods, Chief Financial Officer Richard Galanti said Thursday in a call with analysts after the company reported earnings. That has helped Costco manage supply-chain disruptions, he said. Even so, about 79% of its import containers have been delayed by an average of 51 days.
“We feel pretty good about staying in stock,” he said. “Overall, we feel we’ve dealt pretty well with the supply-chain challenges.”
Like other retailers, Costco is grappling with port delays, raw materials shortages, rising labor costs and challenges in finding enough truck drivers. Some toys and seasonal goods won’t arrive in time for Christmas, “but we’ve mitigated that as best as possible,” he said.
The shares gained less than 1% to $529 after the close of regular trading in New York. Costco advanced 39% this year through Thursday, the biggest gain on an S&P 500 index of U.S. consumer staples companies.
Earnings rose to $2.98 a share in Costco’s first fiscal quarter, which ended Nov. 21, according to a company statement. That exceeded the $2.62 average of analyst estimates compiled by Bloomberg.
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