Costco Wholesale Corporation (NASDAQ:COST) Q2 2024 Earnings Call Transcript

Richard Galanti: Well, the answer is it is and it does. So, the answer is yes. Yes, I was at an open — I was at — two months after it opened in Osaka, Japan, back in October, and on a Sunday, a random Sunday was not there on business, but a random Sunday went over there. You couldn’t move in the place. And it was — and it was great. It was a wonderful picture to see. So, yes, I think that despite the fact that not everybody has cars and despite the fact that people have smaller housing arrangements, value plays well.

Laura Champine: Got it. Thank you.

Operator: Our last question comes from the line of Corey Tarlowe with Jeffries. Your line is open.

Corey Tarlowe: Hi. Good afternoon. Thanks for taking my question. And congrats Richard on your retirement. As it relates to big ticket discretionary items, it seems like that category has improved a little bit. Just wanted to get a little bit of understanding as to what you’ve seen that’s underlying that improvement in trend. And then secondarily on AI, just curious with the recent technology enhancements that the business has made, how you see that impacting the business on a go-forward basis?

Richard Galanti: Sure. Well, in terms of big ticket discretionary, I think we completely believe that it’s some of the things we’re doing on our side to better explain the value. I mean, we — it was almost like you did that and sales skyrocketed, 20% and 30% increases in some of those big ticket categories just over the last couple of months. Even if a piece of it is a year-over-year comparison, which I don’t even know if it is or it isn’t, at the end of the day, it was very evident to us. And the other comment I mentioned, particularly like on appliances, we’re still a very, very small percentage of the total industry. And so it’s easier to take market share when you’re such a small percent of something. So, I think that’ll continue.

As regards to AI, we’re just in the early innings of that. We’ve had third-party AI companies, large companies, including ones that are headquartered in Seattle, come out and talk to us. We — where there’s a whole list of things that we’re doing with working with IT and our CEO and our heads of operations and merchandising to see where and how it might fit. So, that’ll be a question for Gary in the future.

Corey Tarlowe: Great. Thank you very much, and best of luck.

Richard Galanti: Well, thank you, everyone. Again, it’s been fun. The thing I miss most about the job is talking to everybody because I like talking. It’s been a great story to tell, but it’s been an absolute privilege and I appreciate it. So, have a good day and I’m sure we’ll be speaking to some of you shortly over the next few days with additional questions. Have a good day.

Operator: Ladies and gentlemen, this concludes this conference call. You may now disconnect.