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Despite Headwinds Costco Continues to Post Solid Comps
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Costco Wholesale Corporation (COST - Free Report) continued with positive comparable-store sales (comps), consequently sidelining the woes which have gripped the brick-and-mortar retailers for some time now. Major chains are grappling with sluggish store and mall traffic as consumers choose to shop online from the comfort of their homes. But Costco seems somewhat resilient to the challenging retail backdrop. We believe that the company’s hike in annual membership fees and increased penetration of Citi Visa co-brand card program will also benefit the stock in the near term.
Despite Costco’s sound fundamentals, we noted that shares of this Zacks Rank #3 (Hold) stock declined 13.3% in the past one month compared with the Zacks categorized Retail-Discount & Variety industry’s decline of roughly 7.2%. So, what suddenly went wrong with the stock? You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Costco were hit hard and plunged almost 7.2% on Jun 16, after the news of Whole Foods Market, Inc.’s buyout by Amazon.com Inc. (AMZN - Free Report) surfaced.
Costco Continue to Post Solid Comps
Comps for five-week ended Jul 2, 2017 increased 6%, following an increase of 4.1% in May, 3% in April, 6% in March, 4% in February and 7% in January. The company generated net sales of $12.17 billion in June, up 7% year over year. Notably, net sales increased 7%, 5%, 9%, 8% and 9% in May, April, March, February and January, respectively.
Comps for June reflect an increase of 6.5%, 3.2% and 6.2% at the U.S., Canada and Other International locations, respectively. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 6.5%. The company recorded comps increase of 6.3%, 6.8% and 7.1% at the U.S., Canada and Other International locations.
For the 44-week period ended Jul 2, 2017, Costco reported 3.6% jump in comps, displaying an increase of 3.9%, 4% and 1.3% at the U.S., Canada and Other International locations. Net sales for the period came in at $104.28 billion, an increase of 6% from the year-ago period.
Costco, which faces stiff competition from Wal-Mart Stores Inc. (WMT - Free Report) , operates 734 warehouses, comprising 511 warehouses in the U.S. and Puerto Rico, 95 in Canada, 37 in Mexico, 28 in the UK, 25 in Japan, 13 in Korea, 13 in Taiwan, eight in Australia, two in Spain, one in Iceland and one in France.
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Despite Headwinds Costco Continues to Post Solid Comps
Costco Wholesale Corporation (COST - Free Report) continued with positive comparable-store sales (comps), consequently sidelining the woes which have gripped the brick-and-mortar retailers for some time now. Major chains are grappling with sluggish store and mall traffic as consumers choose to shop online from the comfort of their homes. But Costco seems somewhat resilient to the challenging retail backdrop. We believe that the company’s hike in annual membership fees and increased penetration of Citi Visa co-brand card program will also benefit the stock in the near term.
Despite Costco’s sound fundamentals, we noted that shares of this Zacks Rank #3 (Hold) stock declined 13.3% in the past one month compared with the Zacks categorized Retail-Discount & Variety industry’s decline of roughly 7.2%. So, what suddenly went wrong with the stock? You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Costco were hit hard and plunged almost 7.2% on Jun 16, after the news of Whole Foods Market, Inc.’s buyout by Amazon.com Inc. (AMZN - Free Report) surfaced.
Costco Continue to Post Solid Comps
Comps for five-week ended Jul 2, 2017 increased 6%, following an increase of 4.1% in May, 3% in April, 6% in March, 4% in February and 7% in January. The company generated net sales of $12.17 billion in June, up 7% year over year. Notably, net sales increased 7%, 5%, 9%, 8% and 9% in May, April, March, February and January, respectively.
Comps for June reflect an increase of 6.5%, 3.2% and 6.2% at the U.S., Canada and Other International locations, respectively. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 6.5%. The company recorded comps increase of 6.3%, 6.8% and 7.1% at the U.S., Canada and Other International locations.
For the 44-week period ended Jul 2, 2017, Costco reported 3.6% jump in comps, displaying an increase of 3.9%, 4% and 1.3% at the U.S., Canada and Other International locations. Net sales for the period came in at $104.28 billion, an increase of 6% from the year-ago period.
Costco, which faces stiff competition from Wal-Mart Stores Inc. (WMT - Free Report) , operates 734 warehouses, comprising 511 warehouses in the U.S. and Puerto Rico, 95 in Canada, 37 in Mexico, 28 in the UK, 25 in Japan, 13 in Korea, 13 in Taiwan, eight in Australia, two in Spain, one in Iceland and one in France.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>