Yesterday, 4:25 PM
- Comparable sales came in flat for Costco (NASDAQ:COST) in FQ4. If gas price deflation and F/X swings are backed out, comparable sales ended up +3% for the quarter.
- Merchandise costs as a percentage of revenue were up slightly.
- Costco ended its fiscal year with 715 warehouses. The Company says it plans to open nine more warehouses before the end of the calendar year.
- Previously: Costco Wholesale beats by $0.04, misses on revenue (Sept. 29)
- COST +1.09% AH to $149.10.
Yesterday, 4:18 PM
Wed, Sep. 28, 5:35 PM
Thu, Sep. 22, 1:11 PM
- Deutsche Bank points to the outperformance of Costco (COST +0.6%) in relation to the broad retail sector.
- "Costco consistently produces traffic gains and solid softline & hardline category growth," writes analyst Paul Trussell.
- DB note: "Food deflation & tobacco exit headwinds likely continue into Spring, but overall compares begin to ease at year-end. Importantly, we see margin tailwinds, steady member growth, strong renewal rates, & fee increases (upcoming in U.S. & recently enact ed International), as downside protection to the P&E."
- Costco is up 7.7% over the last 52 weeks, compared to a 4.4% slide in the S&P Retail ETF
Thu, Sep. 15, 9:02 AM
- Retail sales fell in August on a month-over-month comparison. The drop wasn't a large surprise considering the onslaught of warnings from the retail sector on store traffic.
- 8 out of the 13 retail categories showed negative growth during the month, with the largest drops recorded in the building material/garden equipment/supplies dealers and miscellaneous store retailers categories. The broad weakness turned on its head the argument that money freed up from a lower level of auto sales would be funneled into other consumer purchases.
- Food services and drinking places showed a +0.9% M/M and +5.8% Y/Y increase in a somewhat surprising result considering the harsh read from Black Box Intelligence on August same-store sales in the restaurant sector BITE. Is the discrepancy an indication that independent restaurants are taking market share?
- On a year-over-year basis, retail sales were up 1.9%. As expected the Amazon-influenced nonstore retailers category did the heavy lifting with an 11% gain. Larger U.S. retail chains (WMT, SPLS, TGT, BBY, DG, COST, KR, WBA, CVS, LOW, HD, SWY) have been raising the issue of pricing pressure in recent conference presentations and guidance updates which could be a nagging sales deflator for the balance of the year.
- Previously: Retail sales disappoint in August (Sept. 15)
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, CNDF, CNSF, IBUY, JHMC, JHMS.
Wed, Aug. 31, 11:49 PM
- Costco's (NASDAQ:COST) net sales grew 2.3% Y/Y to $8.9B in August.
- FQ4 net sales at $35.7B up 2.0% Y/Y, FY net sales at $116.1B up 2% Y/Y.
- Comp sales flat. U.S. flat, Canada +4%, Other international flat.
- Excluding the effects of gasoline prices and currency swings, comparable sales increased 2%; U.S. +2%, Canada +4%, Other international flat.
- Press Release
Wed, Aug. 24, 8:32 AM
- Nomura lowers its estimate on Costco's (NASDAQ:COST) FQ4 comparable store sales growth to 0% from 1% and cuts its view on EPS for the quarter to $1.75.
- "We take a slightly more cautious stance heading into 4Q results given the generally pressured traffic trends we have seen across the broader retail landscape this quarter, largely stemming from the highly competitive environment and the shift to online," writes analyst Jessica Schoen Mace.
- The investment firm keeps a Buy rating on Costco.
- Costco closed at $167.63 yesterday vs. a 52-week trading range of $132.65 to $169.73.
Fri, Aug. 12, 8:49 AM
- Retail sales came in flat for July with weakness in grocery stores, restaurants, and department stores standing out. The U.S. economy had produced three straight months of positive retail sales growth before the disappointment in July.
- Once again, the nonstore retailers category (primarily e-commerce) led growth with a 1.3% M/M and 14.1% Y/Y gain in July. Sales at health and personal care stores were also solid with a 7.8% Y/Y rise.
- Retail sales in June were revised to +0.9% from +0.7% in a positive development for the sector.
- Retail Sales report (.pdf)
- The S&P Retail ETF (NYSEARCA:XRT) is up 0.64% premarket to $45.55 as it looks to extend on yesterday's gain.
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC.
- Related stocks: WMT, TGT, COST, SPLS, HD, LOW, AMZN.
Thu, Aug. 4, 12:40 AM| Thu, Aug. 4, 12:40 AM | 2 Comments
Fri, Jul. 29, 9:23 AM
- Household spending by consumers increased 4.2% in Q2 to mark the best pace for the category since late in 2014.
- The strong read on consumer spending contrasts with the tightening by businesses amid Brexit fears, F/X pain, and political jitters.
- Retail ETFs trail broad stock market averages on the year after a May swoon, although most of the damage has been from the mall sector. Companies with a thriving e-commerce business and/or high mix of U.S. sales have held up.
- Despite the painful headline Q2 GPD miss today, the underlying resiliency shown by consumers could bode well for a variety of retailers such as Amazon (NASDAQ:AMZN), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Kroger (NYSE:KR), Lululemon (NASDAQ:LULU), Dollar General (NYSE:DG), PriceSmart (NASDAQ:PSMT), and Williams-Sonoma (NYSE:WSM) to name a few (add your own ideas in the comments).
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC
Tue, Jul. 26, 5:42 AM
Thu, Jul. 7, 10:14 AM
- Costco (NASDAQ:COST) is up 4.4% after delivering a solid report on June sales. Core same-store sales growth of 3% is more than enough to encourage investors.
- Oppenheimer is also weighing in this morning on the retailer with a detailed analysis of the 20% increase in organic SKUs (stock keeping units) at stores. The big bet on organic is seen as a positive strategy by Costco.
- It's been a quiet move, but Costco now trades at its highest level of the year and has the 52-week high of $169.73 in its sights.
- Previously: Costco reports strong comp sales (ex-gas and F/X) in June (July 7)
Thu, Jul. 7, 12:08 AM
- Costco's (NASDAQ:COST) net sales grew 3.0% Y/Y to $11.33B in June.
- Comp sales flat vs. mean estimate of -1.5%. U.S. +1%, Canada -3%, Other international flat.
- Excluding the effects of gasoline prices and currency swings, comparable sales increased 2%; U.S. +7%, Canada +2%, Other international +3%.
- Press Release
Thu, Jun. 30, 7:45 AM
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