Costco Wholesale Corp Q1 2022 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: John Edward Heinbockel - Guggenheim Securities, LLC, Research Division - Analyst : So Richard, how is KS performing? And what happens -- or how do you think about it in an inflationary environment in terms of how you take price versus like items on the national brand side? And does KS do better in an inflationary environment?

Question: John Edward Heinbockel - Guggenheim Securities, LLC, Research Division - Analyst : Okay. Secondly, you -- the 70% on Costco Logistics, the 70% of your needs, you're at what capacity in logistics? Is it still 50%? Or has it crept above that?

Question: Brandon Babcock Cheatham - Citigroup Inc., Research Division - Analyst : This is Brandon Cheatham on for Paul. I was wondering if we could talk about the increase in CapEx. I think last we spoke, we thought CapEx would have a 3 in front of it. Now it sounds like it has a 4 in front of it. I'm just wondering, was there a change in strategy there. And specifically on the e-comm investments, do you feel like you're playing some catch-up there or laying the groundwork for growth? Just anything that you can share with that.

Question: Brandon Babcock Cheatham - Citigroup Inc., Research Division - Analyst : Got it. And that's how we should kind of think about it going forward long term?

Question: Brandon Babcock Cheatham - Citigroup Inc., Research Division - Analyst : And the kind of $4 billion range is what we should think about CapEx for the long term?

Question: Brandon Babcock Cheatham - Citigroup Inc., Research Division - Analyst : Got it. And you also mentioned that you're able to change out products when you're faced with shortages. I was wondering if you could quantify that versus kind of a normal quarter. And if you are switching out more than usual, what impact does that have on consumer behavior there? And anything on the logistics side as well?