Costco

Costco’s customers looking for value are increasingly opting for cheaper private-label branded products. CFO Gary Millerchip says on a call with analysts that when the company cannot reduce prices for customers, it looks to provide Kirkland Signature items with at least 20% value compared to national brand items. Millerchip says the new men’s walking shoe and facial wipes are already doing quite well, and the company has cut prices on Kirkland pine nuts and frozen shrimp skewers. The company’s new Kirkland Signature lemon blueberry loaf and morning buns also sold well.

Costco shoppers at both ends of the income range are beefing up their purchases. CEO Ron Vachris says on a call with analysts that it’s a healthy environment for all types of shoppers given the company’s value at all price levels. In the meat department, lots of volume is driven by ground beef and boneless, skinless chicken breasts, Vachris says. Meanwhile, wagyu and prime beef offerings are also growing.

Costco Wholesale shares are looking very attractive to investors as retail spending remains tight, and that sentiment is probably going to intensify as spending becomes even more volatile heading into election season, UBS analysts say in a research note. “As this takes place, Costco’s share gains will look even more compelling and the stock will sustain its premium valuation,” the analysts say. The market currently has little appetite for market share losers, and Costco is positioned to keep scooping up market share as macroeconomic strains have more consumers seeking out warehouse memberships to maximize their spending power, the analysts say.

Costco Wholesale’s (COST) upcoming fiscal Q3 financial results are expected to emphasize the strength of its warehouse club business model, UBS Securities said in a note. The firm noted that Costco has consistently increased foot traffic by mid-single digits regardless of the macroeconomic backdrop. “With such strong and consistent growth in footsteps, [Costco] offers exactly what the market is looking for right now, given that retail investors have very little appetite to be exposed to market share losers and are increasingly favoring market share winners,” UBS said in its note Monday. UBS said new member growth, increasing traffic and new store openings likely helped the company grow its net sales by 8%, while earnings per share are estimated at $3.75, above the $3.71 consensus, for fiscal Q3, the firm added. Costco is scheduled to release fiscal Q3 results Thursday. “We believe [Costco] can continue to appeal to a cash strapped

Costco Wholesale Corporation (“Costco” or the “Company”) (NASDAQ:COST) today reported net sales of $19.80 billion for the retail month of April, the four weeks ended May 5, 2024, an increase of 7.1 percent from $18.48 billion last year. Net sales for the first 35 weeks were $166.44 billion, an increase of 7.0 percent from $155.62 billion last year. Comparable sales were as follows: 4 Weeks  35 Weeks U.S. 5.8% 4.1% Canada 5.2% 7.7% Other International 5.1% 9.1% Total Company 5.6% 5.2% E-commerce 14.6% 14.7% Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows: 4 Weeks 35 Weeks U.S. 5.2% 4.4% Canada 5.9% 8.2% Other International 7.0% 7.8% Total Company 5.5% 5.3% E-commerce 14.8% 14.6% This year’s retail month of April was impacted by the shift in timing of Easter. The shift negatively impacted total and comparable sales by a little more than 0.5

Costco Wholesale Corporation Reports March Sales Results and Announces an Increase in Its Quarterly Cash Dividend ISSAQUAH, Wash., April 10, 2024 (GLOBE NEWSWIRE) — Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $23.48 billion for the retail month of March, the five weeks ended April 7, 2024, an increase of 9.4 percent from $21.46 billion last year. Net sales for the first 31 weeks were $146.64 billion, an increase of 6.4 percent from $137.77 billion last year. Comparable sales for the periods ended April 7, 2024 were as follows: 5 Weeks 31 Weeks U.S. 7.3% 3.8% Canada 8.9% 8.1% Other International 8.6% 9.6% Total Company 7.7% 5.2% ======= ======== E-commerce 28.3% 14.8% ======= ======== Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows: 5 Weeks 31 Weeks U.S. 7.4% 4.3% Canada 7.3% 8.5% Other International 8.4% 7.9%

Costco Wholesale March Comparable Sales Rise 7.7%; Reports Net Sales Of $23.48B For The Retail Month Of March, Up 9.4% Y/Y.

By Sabrina Escobar Costco Wholesale’s sales jumped nearly 10% in March compared with a year ago, giving the stock a modest lift in Wednesday’s after-hour trading session. Net sales jumped 9.4% year over year to $23.5 billion, accelerating from February’s 6.9% rise. Same-store sales — a key metric for retailers that measures sales in stores open for more than a year — rose 7.7% in March. This also marked faster growth from February, which saw same-store sales increase 5%. The board of directors increased the company’s quarterly dividend by about 14% to $1.16 per share from $1.02 per share. The dividend is payable May 10 to investors holding the shares at the close of business April 26. Costco stock ticked up 0.7% to $727.50 in after-hours trading. The shares have gained 9.4% this year, modestly outstripping the S&P 500’s 8.2% rise. An improvement in store visits likely helped boost March’s

Costco Wholesale (COST) is showing positive momentum across all metrics, BofA Securities said in a report emailed Monday. Costco’s fiscal Q2 adjusted earnings, excluding tax benefits, stood at $3.71 per share, ahead of estimates. The company’s overall comparable sales grew by 5.8%, propelled by a 5.3% rise in foot traffic. BofA said. “While investors had likely hoped for a membership fee increase, we believe current trends support continued strong [membership fee income] growth,” it added. The company’s membership fee income and trends are growing positively, with a 7.8% year over year increase in total member households, a rise in executive member penetration to 46.2% and an uptick in renewal rates to 92.9% in fiscal Q2, the report said. BofA expects strong member engagement from strategic initiatives including digital advertising and enhancements and adjusted the company’s fiscal 2024 EPS to $16.02 from $15.90 and fiscal 2025 EPS to $18.25 from $17.90.

By Sabrina Escobar Costco Wholesale stock was on track for its second straight day of losses Monday following backlash from a lackluster fiscal second-quarter earnings report. Take advantage of the dip, some analysts said, but be wary of the stock’s valuation. Shares of Costco were falling 1.6% to $713.83 on Monday after closing around 7% lower Friday in the stock’s worst trading day in nearly two years. The past two trading days essentially have erased the stock’s nearly 9% gain over the past month. At the heart of the pullback was Costco’s slight revenue miss for the holiday quarter, which ended in mid-February. As Barrons’ Andrew Bary noted this weekend, a quarterly sales increase of 6% was hardly enough to justify the stock’s lofty valuation. Before Thursday’s earnings report, Costco traded at a record 48 times forward earnings. On Monday, Costco’s price-to-earnings ratio had ticked down to 43.6 — but

Telsey Advisory Group analyst Joseph Feldman maintains Costco Wholesale (NASDAQ:COST) with a Outperform and raises the price target from $785 to $800.

Costco Wholesale (COST) shares dropped 4.6% in premarket activity Friday after the company’s fiscal Q2 results showed the increase in net sales lagged market expectations. The company reported fiscal Q2 earnings late Thursday of $3.92 per diluted share, up from $3.30 a year earlier. Analysts polled by Capital IQ expected $3.61. Net sales for the quarter were $58.44 billion, up from $55.27 billion a year earlier. Analysts surveyed by Capital IQ expected $59.13 billion.