Yesterday, 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
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)
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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