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
Tue, Apr. 26, 8:33 AM
- Costco (NASDAQ:COST) will extend a long-term deal Pilgrim's Pride (NASDAQ:PPC), according to a top executive.
- Shares of Pilgrim's Pride have been under some moderate pressure since Costco announced it planned to build a poultry plant in Nebraska.
- Costco expects its chicken demand to grow steadily over the next few years.
- Now read Costco mulls building poultry-processing plant in Nebraska
Mon, Apr. 25, 10:13 AM
- The conditions are ripe for Costco (NASDAQ:COST) to raise its membership fees, according to UBS analyst Michael Lasser.
- Costco hasn't hiked the monthly fee since 2011. Even a minor price hike has major implications with Costco memberships now up over 81M.
- UBS sees a high probability the price increase will arrive this year.
- Now read Costco: The Next-Gen Dividend Aristocrat?
Tue, Apr. 19, 1:36 PM| Tue, Apr. 19, 1:36 PM | 10 Comments
Mon, Apr. 18, 1:13 PM
- Costco (COST) is looking at building a poultry plant in Nebraska, according to a statement from the local development council.
- The company announced last year that it was moving toward selling only chickens raised in a cage-free environment.
- The local availability of corn and soy meal feed is a factor in Costco looking at the Nebraska site.
- Greater Fremont Development Council press release (.pdf)
- Now read Costco: A Great Company At A Fair Price
Fri, Apr. 15, 2:23 AM
Tue, Apr. 12, 7:12 AM
Thu, Apr. 7, 3:33 PM
- Costco (NASDAQ:COST) is down 3% after March comparable-store sales growth of 3% fell short of the expectation of analysts for a 4% gain.
- Guggenheim says fresh food price deflation and a stretch of tough comparisons are factors in the light Costo comp. There's also a thought that traffic growth with established customers could be maxed out.
- The investment firm thinks Costco will report FY17 EPS of $6.15 vs. $6.08 consensus as F/X pressure eases and product gross margin rate improve.
- On a YTD look, shares of Costco trail Target, Wal-Mart, and broad retail ETFs.
- Now read Looking At Costco's Valuation 'Carry Through' Effect
Wed, Apr. 6, 9:58 PM
- Costco's (NASDAQ:COST) net sales grew 3.0% Y/Y to $10.71B in Mar.
- Comp sales at +1% vs. mean estimate of +1.9%. U.S. +1%, Canada +3%, Other international -1%.
- Excluding the effects of gasoline prices and currency swings, comparable sales increased 4%; U.S. +3%, Canada +9%, Other international +5%.
- Press Release
Mon, Mar. 28, 11:16 AM
- The reward terms for Citigroup's (C -0.3%) new Costco (COST +1.3%) card (coming in May and to be named Costco Anywhere) are considerably better than what American Express (AXP -0.7%) offered, including 4% cash back on up to $7K of gasoline purchases per year (AmEx offered 3% on up to $4K).
- Citi's Costco card will also give 3% cash back on restaurant purchases vs. 2% from AmEx.
- AmEx, of course, could start offering more generous rewards, but they don't come free, and - unlike competitors - AmEx can't make the money back from interest on balances.
- Calling Citi's Costco Anywhere card "significantly more appealing" than AmEx's offering, Credit Suisse expects the Citi/Costco partnership to "aggressively pursue increased Costco membership, dominate in-store spending, and generate significant spending outside the store."
Tue, Mar. 15, 8:49 AM
- Retail sales fell in February to mark the second month in a row of negative growth.
- Sales fell in key categories such as auto dealers (discounting?) and general merchandise stores (TGT, WMT, COST) in a disturbing trend, while gas station sales plummeted as largely expected due to prices.
- The building materials/garden equipment category showed strength, up 1.6% M/M and 12% Y/Y, as warmer weather helped traffic for companies such as Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Tepid traffic at restaurants has been a leading indicator that U.S. consumers aren't spending freely.
- Retail sector ETFs: XLP, XLY, VDC, XRT, VCR, RETL, RTH, FXG, IYK, PBJ, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PSL, PMR, PEZ, UGE, PSCC, PSCD, SZK, BITE.
- Previously: Retail sales slip in February, January revised significantly lower (Mar. 15 2016)
Mon, Mar. 14, 2:56 PM
- Costco (COST +0.3%) is subtly phasing out selling many tobacco products, observes retail analyst Brian Sozzi.
- The fewer number of tobacco items has led to the category comping negative in recent quarters, although a company execs notes that in general tobacco is a low-margin, high-theft business.
- Unlike retail chain CVS which made large proclamations about its tobacco exit, Costco has gone the quiet route.
Thu, Mar. 3, 6:52 PM
- Costco Wholesale (NASDAQ:COST) said today it was raising its starting wage for the first time in nine years, hiking the rate by $1.50/hr. to $13-$13.50 in the U.S. from $11.50-$12.
- "This is a physically challenging job. You’re on your feet, lifting cases, moving carts, and we thought it was time to do it,” Costco CFO Richard Galanti said during today's earnings conference call.
- COST’s highest hourly pay is ~$22.50, and the company plans to give those workers a ~2.5% raise this year, Galanti said.
- COST says the increases will cut EPS for its FQ3 by $0.01 and by $0.02 in the following three quarters.
- COST becomes the latest retailer to raise wages; Wal-Mart last year announced a two-step raise for hundreds of thousands of its U.S. workers, and WMT's Sam’s Club and Target also have raised pay.
- Earlier: Costco Wholesale misses by $0.04, strong comp sales (Mar. 2)
Wed, Mar. 2, 11:00 PM
- Costco Wholesale (NASDAQ:COST): FQ2 EPS of $1.24 misses by $0.04.
- Revenue of $28.17B (+2.6% Y/Y) misses by $250M.
- Comp sales at 1%. U.S. +3%, Canada -7%, Other international -3%.
- Excluding the effects of gasoline prices and currency swings, comp sales increased 5%; U.S. +4%, Canada +10%, Other international +6%.
- Feb comp sales flat. U.S. +2%, Canada -2%, Other international -8%.
- Excluding the effects of gasoline prices and currency swings, Feb comp sales increased 4%; U.S. +4%, Canada +10%, Other international flat.
- Shares -0.2% AH.
- Press Release
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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