Costco Wholesale CorporationNASDAQ
Fri, Dec. 9, 3:11 AM
- From Costco's (NASDAQ:COST) Q3 earnings call:
- Q: "As you do your own research on Amazon (NASDAQ:AMZN), which categories or what would you say like try out your best competitive advantages and what are your opportunities just to make sure you remain very competitive against Amazon and how are you feeling about millennials and generation Z?"
- A: "Well, look in terms of scan-and-go honestly we did a version of scan-and-go literally 20 years ago. A customer I remember would walk in, get an RF gun, radio frequency device walk around scan their own items come up to the front hand that thing to the cashier and the scanner and they print out a receipt. Needless to say, there's a lot more efficient things today. We continue to look at scan-and-go type things, we are not testing it currently but we are looking at it. And I’m not suggesting we are going to do it. We have done self-checkout for a while. We've chosen to not do self checkout at higher volume units because we get people through without it."
- Is Amazon Go a long-term risk to Costco?
Thu, Dec. 8, 11:00 AM
- Costco (NASDAQ:COST) is up 4.30% after turning in a solid Q32 earnings report.
- Piper Jaffray recommends buying shares at current levels with the Citibank Visa card program, improving gross margins and continued membership growth all working in the retailer's favor.
- Cowen is a fan of Costco's +90% membership renewal rate and thinks a bump in membership fees is likely.
- SA contributor This is Alpha tells why Costco is a preferable investment to Wal-Mart and Target.
Wed, Dec. 7, 4:17 PM
Tue, Dec. 6, 5:35 PM
Wed, Nov. 30, 11:07 PM
- Costco's (NASDAQ:COST) net sales grew 3% Y/Y to $9.95B in November.
- Q1 Costco's (COST) net sales grew 3% Y/Y to $27.47B in November.
- Comp sales +1%. U.S. +1%, Canada +1%, Other international -2%.
- Q1 Comp sales +1%. U.S. +1%, Canada +4%, Other international flat.
- Excluding the effects of gasoline prices and currency swings, comparable sales increased 2%; U.S. +1%, Canada +3%, Other international +4%.
- Q1 Excluding the effects of gasoline prices and currency swings, comparable sales increased 2%; U.S. +1%, Canada +5%, Other international +3%.
- Press Release
Wed, Nov. 30, 2:14 PM
- Retail Metrics: The retail industry specialist expects chain stores to report a 1.1% increase in comparable sales during November. The estimate on October retail comparable sales was revised up to 1.5% from 1.0%. Both marks arrive against a deflation and low traffic headwind in the sector.
- NPD Group: The research firm plays meteorologist by warning that the lack of "true" winter weather will hit some apparel and shoe sellers.
- FBR Capital: The firm points to a strong month for Bath & Body Works (NYSE:LB).
- Piper Jaffray: The retail analyst team is cautiously optimistic that Costco (NASDAQ:COST) is off to a good start.
- November has been a stellar month for Target (NYSE:TGT) and Best Buy (NYSE:BBY), up 16% and 18% respectively. Both retailers trade with a ~14 forward PE ratio which has some traders buzzing that's still room left to run.
- Amazon dominated a lot of the Black Friday and Cyber Monday talk, but it was Wayfair (W +4.6%) that may have posted the most impressive online sales growth vs. expectations. Shares of Wayfair are still 28% below their 52-week high, although valuation isn't for the feint of heart.
- At home on Seeking Alpha, there's been some good discusssion on the impact of the reduction of SNAP benefits (nutrition assistance) in the U.S. on the retail sector. Tomorrow's earnings report from Dollar General (NYSE:DG) and the firm's conference call Q&A could shine a light on that wildcard.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF, FTXD, JHMC, IBUY.
- Previously: Black Friday channel checks show pockets of strength (Nov. 28)
- Previously: Department store sales in positive territory for November (Nov. 29)
- Previously: Cyber Monday wrap and retail outperformers (Nov. 29)
Thu, Nov. 3, 2:22 AM| Thu, Nov. 3, 2:22 AM | 1 Comment
Wed, Oct. 26, 11:44 AM| Wed, Oct. 26, 11:44 AM | 4 Comments
Sun, Oct. 16, 9:49 AM
- "Value investing works like clockwork, but sometimes your clock has to be very slow," says Joel Greenblatt, asked in a Barron's interview about the recent underperformance of some of his funds. The man behind the classic "You Can Be A Stock Market Genius" also published a barely-read "The Big Secret For The Small Investor" five years ago, noting, among other things, that average investors tend to dump good strategies at precisely the wrong time.
- Favorite longs in his long/short portfolio now include Apple (NASDAQ:AAPL), with double-digit cash flow yields vs. the S&P 500 at less than half of that. "People worry that it’s effectively a hardware company that will crash and burn. But it’s also an ecosystem of products that play with one another and a brand people like."
- He owns not just Apple, he says, but a "bucket" of Apples - companies with gushing cash flow, huge returns on capital, and nice market niches. Qualcomm (NASDAQ:QCOM) and CVS fit the bill.
- On the short side is Salesforce.com (NYSE:CRM) at 218x pretax earnings and 7x sales. Even if optimistic earnings estimates prove true, it's still selling for 50x. Others include Costco (NASDAQ:COST) - a great retailer, but still a retailer - at 28x earnings, but not growing and also competing with Amazon. Another is Caterpillar (NYSE:CAT), which has fans thanks to its 3.5% yield, but doesn't earn enough to pay that dividend.
- Gotham funds: GENIX, GARIX, GONIX, GINDX
Wed, Oct. 12, 4:28 PM
Thu, Oct. 6, 3:34 PM
- Guggenheim digs into Costco's (COST -0.3%) rundown of September sales.
- "The flat U.S. “core” result might raise some eyebrows but the segment was up against a strong 7% year-ago gain, placing the two-year gain at a respectable 7%," writes analyst John Heinbockel.
- "As food deflation and the impact of the tobacco exit ebb over the next six months, we would expect the 'core' comp to rebound, the principal question being to what degree? 3-4% would be a reasonable target," he adds.
- Heinbockel thinks Costco's share price could slip a little bit further as the retailer faces more near-term data comparisons before reaching an inflection point in early 2017.
- Previously: Costco reports comp sales in September (Oct. 6)
Thu, Oct. 6, 12:11 AM| Thu, Oct. 6, 12:11 AM | 2 Comments
Fri, Sep. 30, 10:02 AM
- 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
Thu, Sep. 29, 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.
Thu, Sep. 29, 4:18 PM
Wed, Sep. 28, 5:35 PM