Thu, Jun. 23, 8:57 AM
- At issue appear to be lengthy wait times and trouble activating accounts for the new Costco Anywhere Visa Card from Citigroup (NYSE:C). The cards became available for use on Monday as Citi took over the Costco (NASDAQ:COST) portfolio from American Express (NYSE:AXP).
- Costco's sales have slowed of late, with one reason possibly being "friction" from the credit-card switch, says Scott Mushkin from Wolfe Research.
- Citi says it's issued 11M cards and had received 1.5M customer calls by late Wednesday, but also says call volumes are returning to normal.
- Analysts are excited about the potential for lower costs at Costco. Morgan Stanley's Simeon Gutman figures 25% of Costco sales were made with AmEx, which carried a fee of 0.6%, costing the company $180M per year. With Visa, fees should fall to 0.1-0.4%, saving $60M-$150M annually.
Wed, Jun. 22, 7:23 AM
Wed, Jun. 8, 10:35 AM
- BrandZ keeps a pulse on the value of brands with consumers. Does it matter? An index of companies in the BrandZ Strong Brands Portfolio outperformed the S&P 500 by 5X over the last nine years.
- The list of top risers in brand value this year includes Amazon (NASDAQ:AMZN), Starbucks (NASDAQ:SBUX), JD.com (NASDAQ:JD), Home Depot (NYSE:HD), Lowe's' (NYSE:LOW), Costco (NASDAQ:COST), Burger King (NYSE:QSR), MasterCard (NYSE:MA), and Chanel (private).
- Electrek notes that Tesla Motors (NASDAQ:TSLA) bumped Volkswagen out of the top ten in the ranking of automobile brands. Toyota (NYSE:TM), BMW (OTCPK:BAMXY), and Mercedes-Benz (OTCPK:DDAIF) hold down the top three spots.
Wed, Jun. 1, 11:47 PM
- Costco's (NASDAQ:COST) net sales grew 3.0% Y/Y to $9.23B in May due to one additional sales day in U.S. against last year due to timing of Memorial day.
- Comp sales flat, vs. mean estimate of +1.4%. U.S. +1%, Canada -1%, Other international -3%.
- Excluding the effects of gasoline prices and currency swings, comparable sales increased 4%; U.S. +4%, Canada +6%, Other international +3%.
- Press Release
Wed, Jun. 1, 8:15 AM
Wed, May 25, 10:26 PM| Wed, May 25, 10:26 PM | 22 Comments
Wed, May 25, 10:39 AM
- A price cut by J.M. Smucker (SJM +0.4%) on packaged coffee has more to do with competition from private-label grocery store brands than green coffee costs, according to analysts.
- "Coffee brands are seeking market share versus holding prices," notes Rabobank's Ross Colbert.
- Kroger (NYSE:KR), Safeway (NYSE:ABS), and Costco (NASDAQ:COST) are all aggressively selling their private-label brands in stores.
- J.M. Smucker sells coffee under the Folgers and Dunkin Donuts' brand names.
Tue, May 24, 5:35 PM
Thu, May 19, 7:36 AM
- Costco (NASDAQ:COST) is higher in early trading after Wal-Mart topped expectations with its Q1 report.
- Shares of Costco have fallen about 8% this month as a steady stream of weak reports from retailers increased anxiety over Costco's own report due out on May 25.
- Analysts expect Costco to report revenue of $26.976B and EPS of $1.22. The company will have to show a +1% gain in U.S. comparable-store sales to have kept pace with Target and Wal-Mart.
- COST +1.21% premarket to $143.00.
- Now read Learning From The Start Portfolio - Costco Added
Wed, May 18, 9:15 AM
- Retail stocks are poised for some volatile action after Target warns on an "increasingly volatile" consumer in the U.S. Shares of Target were down as much as 9% off of disappointing Q1 numbers and guidance.
- Though the Commerce Department's read on April retail sales came in positive, Wolfe Research isn't so sure that major chains are getting the dollars anticipated.
- "The climate appears to have deteriorated to a certain degree across retail from late March and into April," says analyst Scott Mushkin.
- The biggest name in all of retail reports earnings tomorrow out of Arkansas. Shares of Wal-Mart (NYSE:WMT) are down 3.38% in premarket action with anxiety ratcheted up another notch.
- Costco (NASDAQ:COST) is down 2.65% in early action and J.C. Penney (NYSE:JCP) is off 1.4%.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PEZ, PMR, UGE, SZK.
Fri, May 13, 9:59 AM
- A strong report on retail sales isn't working magic with shares of some of the larger U.S. chain stores.
- Wal-Mart (WMT -2.4%), Target (TGT -2.1%), Macy's (M -1.8%), Best Buy (BBY -1.3%), Walgreen Boots Alliance (WBA -0.4%), TJX Companies (TJX -1.4%), and Costco (COST -0.6%) are some of the names taking their cues from the steady roll of disappointing Q1 earnings reports.
- An intriguing pullout from the retail sales breakdown for April is also a potential factor. Non-store retailers (think Amazon (NASDAQ:AMZN)) increased sales by over 10% Y/Y during the month to easily top all other categories.
- Previously: Retail sales: Consumers spending, just not where they used to (May 13)
Fri, May 6, 2:00 PM
- Jefferies gives estimates on Costco (COST -1.1%) a downward revision to account for the tough sales comparables the retailer is due to run up against.
- "Investors probably didn't appreciate how much the strong value in gas last year drove membership, traffic and sales, but now Costco appears to be a victim of its own success as we lap the strong gains," says analyst Daniel Binder who ranks #1,156 out of 3,899 analysts listed on TipRanks.
- Jefferies' FY16 estimate slides to $5.18 vs. $5.29 prior and $5.34 consensus.
- Jefferies' FY17 EPS estimate goes to $5.86 vs. $5.92 prior and $6.06 consensus.
- Jefferies' PT moves down to $135 from $142.
- Previously: Costco reports 3% increase in comp sales (ex-gas and F/X) in April (May 4)
Wed, May 4, 11:46 PM
- Costco's (NASDAQ:COST) net sales grew 3.0% Y/Y to $8.98B in Apr.
- Comp sales flat. U.S. flat, Canada +2%, Other international -3%.
- Excluding the effects of gasoline prices and currency swings, comparable sales increased 3%; U.S. +2%, Canada +7%, Other international +1%.
- Press Release
Tue, May 3, 11:20 AM
- Costco (COST) is initiated by RBC Capital Markets with an Outperform rating. The positive outlook on the retailer from RBC looks even more striking considering Wal-Mart was started off by the same analyst team at Underperform.
- Analyst Scott Ciccarelli sums up the bull thesis: "Costco’s membership model provides it with a growing, high-margin revenue stream, while the extreme values it provides to members and treasure-hunt design has led to some of the best/most consistent customer traffic growth in all of Retail.”
Mon, May 2, 7:51 AM
- Piper Jaffray stays confident on Costco (NASDAQ:COST) ahead of the retailer's Q1 earnings report due out on May 4.
- The investment firm thinks Costco (rated at Overweight) will show a 4% to 6% gain in core comparable store sales during the quarter.
- "We continue to recommend Costco shares as valuation has improved relative to other consumers staples and we believe there are catalysts on the horizon to drive earnings estimates higher," reads the PJ note.
- The consensus estimates on Costco are for revenue of $27.29B and EPS of $1.24.
- Now read Costco: The Next-Gen Dividend Aristocrat?
Sat, Apr. 30, 11:08 AM
- Retail stocks slumped yesterday after a weak read on consumer spending. Notable companies with drops of over 2% included Target (NYSE:TGT), Costco (NASDAQ:COST), Urban Outfitters (NASDAQ:URBN), and Macy's (NYSE:M). Wal-Mart (NYSE:WMT) was down 3% to cut into what's been a sizable gain this year.
- The damage was inflicted after the personal consumption expenditures price index (ex-food/energy) gained only 0.1% in March to decelerate from February's level.
- SA contributor George Putnam hears all the noise about soft store traffic, but still makes the case that companies with good brands, relatively strong balance sheets, and decent dividends are attractive investments.
- A value screen of retail stocks indicates that many chain store names may be oversold due to the intense focus by investors on limp comparable-store sales growth (Y/Y) and F/X pressure - two trends seen by some analysts as reversing this year.
- Tailored Brands (NYSE:TLRD), Gap (NYSE:GPS), Buckle (NYSE:BKE), Steinmart (NASDAQ:SMRT), American Eagle Outfitters (NYSE:AEO), Macy's (M), GameStop (NYSE:GME), and Best Buy (NYSE:BBY) all made the cut of having a forward P/E of less than 12, a dividend yield of over 2%, and a balance sheet ratio above the sector average.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR
Costco Wholesale Corp. operates membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. It operates warehouses in the U.S., Canada, the United Kingdom,... More
Industry: Discount, Variety Stores
Country: United States
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