ISSAQUAH, Wash. — Costco Wholesale Corp. here said Thursday it intends to introduce additional canned and packaged goods under its Kirkland Signature label over the next few months.
Richard Galanti, executive vice president and chief financial officer, declined to pinpoint the specific items the company will offer, “but we're prepared to try everything,” he said.
"We tried a private-label mayonnaise two or three years ago, and a peanut butter, and under-whelmed everyone, so not everything works,” Galanti said. “But most things do work, and not a whole lot is sacrosanct in terms of branded goods.”
Costco's goal, he noted, is to get private label sales up to 37%, “but that will take some time.”
Galanti made his remarks during a call with investors to discuss financial results for the third quarter and 36 weeks that ended May 9. For the 12-week quarter net income rose 45.7% to $306 million, while sales climbed 12.3% to $17.4 billion, and comparable-store sales, excluding gasoline inflation and the strengthening of foreign currencies, increased 4% overall and 3% in the U.S. alone. For the year to date net income jumped 22.3% to $871 million, while sales were up 9.7% to $52.7 million and comps, excluding gas inflation and foreign exchange, rose 3% overall and 2% in the U.S.
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