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Costco Wholesale Corporation (COST)

  • Mon, Jun. 1, 12:49 PM
    • Iconic food and beverage brands continue to grow out of favor with U.S. consumers, according to a new report from Rabobank.
    • Many Q1 earnings reports tipped off weakness at well-known F&B brands.
    • The bank notes that the increasing purchase power of the millennial generation is a major factor in the shift as e-commerce accounts for a higher mix of purchasing.
    • A willingness of major retail chains such as Target (NYSE:TGT), Kroger (NYSE:KR), and Costco (NASDAQ:COST) to attempt to differentiate themselves with new concepts and products has also contributed to well-known brands slipping.
    • Rabobank thinks major food and beverage players can still show strong growth rates if they are nimble with their strategy and use M&A wisely to catch fresh brands on the upswing.
    | Mon, Jun. 1, 12:49 PM | 6 Comments
  • Thu, May 28, 7:37 AM
    • Costco (NASDAQ:COST) reports comparable-store sales in the U.S. rose 1% in the U.S (+5% ex-gas) in FQ3.
    • The international comp was -6% (+7% ex-gas and F/X).
    • Membership sales +4.1% to $584M.
    • SG&A expenses +0.1% to $22.69B.
    • Merchandise inventory +4.9% to $8.869B.
    • Store guidance: The company expects to open 15 new warehouses before the end of its fiscal year in August.
    • Previously: Costco Wholesale beats by $0.01, misses on revenue
    • COST -0.80% premarket.
    | Thu, May 28, 7:37 AM | 1 Comment
  • Thu, May 28, 12:13 AM
    • Costco Wholesale (NASDAQ:COST): FQ3 EPS of $1.17 beats by $0.01.
    • Revenue of $26.1B (+1.2% Y/Y) misses by $530M.
    • Press Release
    | Thu, May 28, 12:13 AM | Comment!
  • Tue, May 26, 5:35 PM
  • Mon, May 18, 1:07 PM
    • Societe Generale is out with a note in which it dissects the impact of higher interest rates on stocks.
    • The investment firm notes the Consumer Staples ETF (NYSEARCA:XLP) boasts a dividend yield of 2.5% which becomes less attractive as rates march upward.
    • Individual consumer staples stocks identified by SG as having the strongest correlation to swings in the 10-year Treasury yield are Colgate-Palmolive (NYSE:CL), Costco (NASDAQ:COST), McKesson (NYSE:MCK), and Brown-Forman (BF.A, BF.B).
    • Consumer Staples ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC.
    | Mon, May 18, 1:07 PM | 8 Comments
  • Wed, May 13, 12:24 PM
    • Amherst Pierpont has a positive take on today's U.S. Retail Sales report, noting the upward adjustment to March nearly offsets the April shortfall.
    • "This is nothing that could not be easily fixed with another modest upward revision a month from now," reads a note from the trading firm.
    • Capital Economist's Paul Ashworth is bearish on the report. The economist says the weak monthly tally calls into question if cold weather was truly behind the soft consumer spending seen in February and March.
    • The National Retail Federation points to the "anemic" growth seen in the year-over-year retail sales compares.
    • Retail giants Wal-Mart (WMT -0.9%), Target (TGT -0.8%), and Costco (COST -0.4%) are all lower on the day.
    • Dollar General (DG -1.2%) and Dollar Tree (DLTR -1.1%) are also out of favor.
    • Previously: Retail sales continue to slow
    | Wed, May 13, 12:24 PM | 2 Comments
  • Thu, May 7, 7:05 AM
    • Costco (NASDAQ:COST) reports sales rose 2% Y/Y to $8.75B in April.
    • Comparable-store sales in the U.S. were up 2%, while international comparable-store sales fell 4%.
    • If the impact of gas price deflation and F/X are backed out, the company's total comp comes in at +7%.
    | Thu, May 7, 7:05 AM | 4 Comments
  • Thu, May 7, 5:37 AM
    • Costco's (NASDAQ:COST) net sales grew 2% on year to $8.75B in Apr.
    • Comparable sales flat. U.S. +2%, international -4%.
    • Excluding the effects of gasoline prices and currency swings, comparable sales increased 7%; U.S. +7%, international +9%.
    • Press Release
    | Thu, May 7, 5:37 AM | Comment!
  • Tue, May 5, 12:13 PM
    • Fomento Económico Mexicano (NYSE:FMX) confirms it has asked for government authorization to sell alcoholic beverages in a small retail format in Texas.
    • The company says it will invest $850M to open 900 stores in the state if regulators clear the plan.
    • The development coincides with Wal-Mart also trying to get clearance to sell alcohol in Texas which has restrictive policies for publicly-traded companies in the beverage category.
    • Costco (NASDAQ:COST) is a step ahead by partnering with Texas-owned WB Liquors, but is also pushing the state for reform.
    • Kroger (NYSE:KR) has also reportedly been making noise about selling liquor in its Texas outlets.
    • Previously: Wal-Mart pushes for right to sell alcohol in Lone Star State (Apr. 27 2015)
    | Tue, May 5, 12:13 PM | Comment!
  • Fri, Apr. 24, 1:21 PM
    • Guggenheim Partners thinks expectations are running a bit hot on Costco (COST +0.6%).
    • The investment firm takes its estimate for FY16 EPS down to $5.55 from $5.70 after working out the impact of shrinking gas margins and F/X pressure.
    • Guggenheim acknowledges the benefit of Costco's new deal with Visa and Citi, but thinks share price has more than factored in the cost savings.
    • Costco's FQ3 report is due out on May 27.
    | Fri, Apr. 24, 1:21 PM | 4 Comments
  • Fri, Apr. 17, 5:12 PM
    • Costco (NASDAQ:COST) is hiking its quarterly dividend by 13% ($0.045/share) to $0.40/share. That's good for a 1.1% yield at current levels. The next dividend is payable on May 15 to shareholders on record as of the May 1 close.
    • The bulk goods retailer is also launching a new $4B buyback that replaces its existing $4B authorization (had $2.5B remaining). The buyback expires in April 2019, and is good for repurchasing 6% of shares at current levels.
    • COST +0.5% AH to $145.25.
    | Fri, Apr. 17, 5:12 PM | 6 Comments
  • Fri, Apr. 17, 3:45 PM
    • In the sort of things dreams are made of for retailers, Costco's (COST -1.7%) new deal with Visa (V -1.6%) and Citigroup (C -1.6%) will have the company paying next to nothing for transactions vs. the roughly 0.6% it pays current partner American Express (AXP -4.2%).
    • "The numbers didn't add up," said AmEx CEO Ken Chenault last month when telling his shareholders why the company let the Costco relationship go. "We couldn't accept their financial terms."
    • For Citigroup, it's plan is to make money by customers carrying loan balances, and for Visa it hopes to earn when customers use those cards at other retailers where fees are higher. Banks generally make about 80% of their credit card revenue from interest balances and other fees, with interchange making up the rest, according to Bernstein's Lisa Ellis.
    • To put some numbers on it, Costco had about $100B in sales last year, with its customers accounting for 20% of AmEx's loans and 8% of spending.
    | Fri, Apr. 17, 3:45 PM | 71 Comments
  • Thu, Apr. 9, 8:27 AM
    • Shares of Costco (NASDAQ:COST) trade lower in early action after the company's March sales report disappoints.
    • The -2% comp was below the -1% analysts forecast and marked the first negative headline comp since 2009.
    • Putting aside the F/X pressure and the loss of a selling day in the month, the company's +6% comp in the U.S. on strong traffic looked just fine.
    • Previously: Costco report Mar. same store sales at -2.0%
    • COST -1.0% premarket.
    | Thu, Apr. 9, 8:27 AM | 6 Comments
  • Thu, Apr. 9, 3:49 AM
    • Costco's (NASDAQ:COST) net sales declined 0.3% on year to $10.40B in Mar.
    • Comparable sales -2.0%. U.S. flat, international -9%.
    • Excluding the effects of gasoline prices and currency swings, comparable sales increased 4%; U.S. +4%, international +4%.
    • Press Release
    | Thu, Apr. 9, 3:49 AM | Comment!
  • Tue, Mar. 24, 9:35 AM
    • Fresh & Easy is closing stores in advance of launching a fresh-food convenience store chain.
    • 30 stores in California by F&E will be shuttered as part of the initiative.
    • Though details on the new C-store venture are scant, Apple store designer ADMI is reportedly working on the project.
    • Fresh & Easy is owned by P-E firm Yucaipa which bought the chain from Tesco after it bled money under the direction of the British retail giant.
    • Fresh & Easy has rebranded some stores in the U.S. under the Wild Oats banner and has been mentioned as an IPO candidate.
    • The success of the new C-store fresh food chain will be closely watched by a large number of retail and grocery companies which could partner, mimic, or ignore the concept.
    • Sprouts Farmers Market (NASDAQ:SFM), Whole Foods Market (NASDAQ:WFM), Kroger (NYSE:KR), The Fresh Market (NASDAQ:TFM), Natural Grocers by Vitamin Cottage (NYSE:NGVC), and Fairway Group (NASDAQ:FWM) all have some skin in the game.
    • There's also Target (NYSE:TGT), Wal-Mart (NYSE:WMT), and Costco (NASDAQ:COST) which are stressing both "fresh" and "easy" with their grocery strategy.
    • AmazonFresh (NASDAQ:AMZN) and Instacart are also looking to captivate fresh food buyers with their models.
    | Tue, Mar. 24, 9:35 AM | 1 Comment
  • Tue, Mar. 17, 12:25 PM
    • The Canadian Food Inspection Agency has suspended the license of Costco (COST -0.5%) to import fish, according to reports.
    • The regulator pulled the license after Costco violated regulations several times over the last couple of years with canned tuna imports.
    • Costco can sell still fish products in Canada if they are sourced from a federally regulated Canadian fish import firm.
    | Tue, Mar. 17, 12:25 PM | 3 Comments
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Company Description
Costco Wholesale Corp and its subsidiaries operate membership warehouses. It offers its members low prices on a limited selection of nationally branded and select private-label products in merchandise categories.