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Costco's (COST) Comparable Sales Regain Momentum in April
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Costco Wholesale Corporation’s (COST - Free Report) growth strategies, better price management and decent membership trends have been contributing to its performance. Cumulatively, these factors have been aiding this Issaquah, WA-based company in registering decent sales numbers. Markedly, comparable sales rebounded in April after a hiccup in March.
Comparable Sales Bounce
Comparable sales for the retail month of April — the four-week period ended Apr 30, 2023 — increased 1.4%. The metric bounced back from a decline of 1.1% in March. Comparable sales for April reflect an improvement of 0.9%, 0.5% and 4.9% in the United States, Canada and Other International locations, respectively.
Excluding the impacts of changes in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 4.3% on improvements of 2.9%, 8.3% and 7.5% in the United States, Canada and Other International locations, respectively.
We note that Costco’s comparable e-commerce sales fell 5.9% year over year. Excluding the impact of gasoline prices and foreign exchange, the same declined 4.9% year over year.
Image Source: Zacks Investment Research
Decent Sales Performance
Costco’s net sales increased 3% to $17.85 billion for the retail month of April from $17.33 billion in the last year. This followed improvements of 0.5% and 4.7% in March and February, respectively.
One of the widely recognized names in the industry, Costco has been providing its members with quality goods and services. The company, which is among the biggest winners amid the pandemic, sells products at discounted prices to draw customers who have been seeking both value and convenience amid rising prices.
Bottom Line
Costco continues to be one of the dominant warehouse retailers based on the expanse and quality of merchandise offered. The company's distinctive membership business model and pricing power set it apart from traditional players. We believe a favorable product mix, steady store traffic, pricing power and strong liquidity should benefit Costco.
We note that shares of this Zacks Rank #3 (Hold) company have risen 7.1% in the year-to-date period compared with the Retail – Discount Stores industry’s growth of 1.2%.
3 Picks You Can’t Miss Out On
Here we have highlighted three better-ranked stocks, namely Kroger (KR - Free Report) , BJ's Wholesale Club (BJ - Free Report) and General Mills (GIS - Free Report) .
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 2.5% and 6.6%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 9.8%, on average.
BJ's Wholesale Club, a leading operator of membership warehouse clubs, carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 9.3%.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and earnings suggests growth of 7.3% and 0.8% from the year-ago period. BJ has a trailing four-quarter earnings surprise of 19.6%, on average.
General Mills, which manufactures and markets branded consumer foods, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 7.5%.
The Zacks Consensus Estimate for General Mills’ current financial-year sales and earnings suggests growth of 6.3% and 7.4% from the year-ago period. GIS has a trailing four-quarter earnings surprise of 8.1%, on average.
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Costco's (COST) Comparable Sales Regain Momentum in April
Costco Wholesale Corporation’s (COST - Free Report) growth strategies, better price management and decent membership trends have been contributing to its performance. Cumulatively, these factors have been aiding this Issaquah, WA-based company in registering decent sales numbers. Markedly, comparable sales rebounded in April after a hiccup in March.
Comparable Sales Bounce
Comparable sales for the retail month of April — the four-week period ended Apr 30, 2023 — increased 1.4%. The metric bounced back from a decline of 1.1% in March. Comparable sales for April reflect an improvement of 0.9%, 0.5% and 4.9% in the United States, Canada and Other International locations, respectively.
Excluding the impacts of changes in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 4.3% on improvements of 2.9%, 8.3% and 7.5% in the United States, Canada and Other International locations, respectively.
We note that Costco’s comparable e-commerce sales fell 5.9% year over year. Excluding the impact of gasoline prices and foreign exchange, the same declined 4.9% year over year.
Image Source: Zacks Investment Research
Decent Sales Performance
Costco’s net sales increased 3% to $17.85 billion for the retail month of April from $17.33 billion in the last year. This followed improvements of 0.5% and 4.7% in March and February, respectively.
One of the widely recognized names in the industry, Costco has been providing its members with quality goods and services. The company, which is among the biggest winners amid the pandemic, sells products at discounted prices to draw customers who have been seeking both value and convenience amid rising prices.
Bottom Line
Costco continues to be one of the dominant warehouse retailers based on the expanse and quality of merchandise offered. The company's distinctive membership business model and pricing power set it apart from traditional players. We believe a favorable product mix, steady store traffic, pricing power and strong liquidity should benefit Costco.
We note that shares of this Zacks Rank #3 (Hold) company have risen 7.1% in the year-to-date period compared with the Retail – Discount Stores industry’s growth of 1.2%.
3 Picks You Can’t Miss Out On
Here we have highlighted three better-ranked stocks, namely Kroger (KR - Free Report) , BJ's Wholesale Club (BJ - Free Report) and General Mills (GIS - Free Report) .
Kroger, which operates supermarkets and multi-department stores, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 2.5% and 6.6%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 9.8%, on average.
BJ's Wholesale Club, a leading operator of membership warehouse clubs, carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 9.3%.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and earnings suggests growth of 7.3% and 0.8% from the year-ago period. BJ has a trailing four-quarter earnings surprise of 19.6%, on average.
General Mills, which manufactures and markets branded consumer foods, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 7.5%.
The Zacks Consensus Estimate for General Mills’ current financial-year sales and earnings suggests growth of 6.3% and 7.4% from the year-ago period. GIS has a trailing four-quarter earnings surprise of 8.1%, on average.