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Costco CFO: Don't call us Amazon proof

  • A fascinating exchange during Costco's (NASDAQ:COST) earnings call speaks volume on how major retailers view the Amazon threat.
  • In response to a question from Cowen, CFO Richard Galanti said the company's doesn't believe that it's in the small group of retailers that are "Amazon proof" or "Internet proof."
  • "We don’t buy that for a minute," noted Galanti on the view Costco hasn't lost a sale of two to the Seattle juggernaut. It's been suggesting before (outside of Costco) that the business model fully protects the warehouse operator from online poaching.
  • Plotting around Amazon and focusing on Costco's strengths is part of management's strategy.
  • "Our value proposition is best served for us when it’s in-store getting members to come in and buying when they can see everything there that we have," stated Galanti.
  • Previously: Costco Wholesale beats by $0.04, misses on revenue (Sept. 29)
  • Previously: Underlying comparable sales rise 3% at Costco (Sept. 29)
  • Costco earnings call transcript

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