We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Costco (COST) Posts Decent Comparable Sales Growth in January
Read MoreHide Full Article
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 continued to display strength in January.
Digging Into Comparable Sales
Costco’s comparable sales for the retail month of January — the five-week period ended Feb 4, 2024 — advanced 2.7%. This followed an increase of 8.5% and 3.5% registered in December and November, respectively. Comparable sales for January reflect an improvement of 1.6%, 6.2% and 5.1% 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 3.4% on improvements of 2.2%, 6.6% and 6.3% in the United States, Canada and Other International locations, respectively.
We note that Costco’s comparable e-commerce sales increased 21% year over year. Excluding the impact of gasoline prices and foreign exchange, the metric rose 20.9% year over year.
Costco’s net sales increased 4.5% to $22.08 billion for the retail month of January from $21.13 billion last year. This followed an improvement of 9.9% and 5.1% witnessed in December and November, respectively.
Image Source: Zacks Investment Research
Growing Membership Base
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. Membership fees increased 8.2% to $1,082 million in the first quarter of fiscal 2024. The company ended the quarter with 72 million paid household members.
Wrapping Up
Through a calculated approach that involves identifying untapped markets and tailoring offerings to meet customer preferences, Costco has managed to deepen its roots. This retail bellwether has been steadily expanding its footprint through new club openings in the domestic and international markets. Costco also operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
We believe a favorable product mix, membership growth, pricing power and strong liquidity should benefit Costco. Shares of this Zacks Rank #3 (Hold) company have advanced 28.8% in the past six months compared with the Retail – Discount Stores industry’s rise of 19%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Casey's General Stores (CASY - Free Report) , Vital Farms (VITL - Free Report) and Ollie's Bargain (OLLI - Free Report) .
Casey's General Stores, the third largest convenience retailer and fifth largest pizza chain in the United States, currently sports a Zacks Rank #1 (Strong Buy). CASY has a trailing four-quarter earnings surprise of 17.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Casey's current financial-year sales and earnings suggests growth of around 0.3% and 9%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 145%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29% from the year-ago reported figure.
Ollie's Bargain, America’s largest retailer of closeout merchandise and excess inventory, currently carries a Zacks Rank #2. Ollie's Bargain has a trailing four-quarter earnings surprise of 7%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and earnings suggests growth of 15.1% and 74.7%, respectively, from the year-ago reported numbers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Costco (COST) Posts Decent Comparable Sales Growth in January
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 continued to display strength in January.
Digging Into Comparable Sales
Costco’s comparable sales for the retail month of January — the five-week period ended Feb 4, 2024 — advanced 2.7%. This followed an increase of 8.5% and 3.5% registered in December and November, respectively. Comparable sales for January reflect an improvement of 1.6%, 6.2% and 5.1% 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 3.4% on improvements of 2.2%, 6.6% and 6.3% in the United States, Canada and Other International locations, respectively.
We note that Costco’s comparable e-commerce sales increased 21% year over year. Excluding the impact of gasoline prices and foreign exchange, the metric rose 20.9% year over year.
Costco’s net sales increased 4.5% to $22.08 billion for the retail month of January from $21.13 billion last year. This followed an improvement of 9.9% and 5.1% witnessed in December and November, respectively.
Image Source: Zacks Investment Research
Growing Membership Base
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. Membership fees increased 8.2% to $1,082 million in the first quarter of fiscal 2024. The company ended the quarter with 72 million paid household members.
Wrapping Up
Through a calculated approach that involves identifying untapped markets and tailoring offerings to meet customer preferences, Costco has managed to deepen its roots. This retail bellwether has been steadily expanding its footprint through new club openings in the domestic and international markets. Costco also operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
We believe a favorable product mix, membership growth, pricing power and strong liquidity should benefit Costco. Shares of this Zacks Rank #3 (Hold) company have advanced 28.8% in the past six months compared with the Retail – Discount Stores industry’s rise of 19%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Casey's General Stores (CASY - Free Report) , Vital Farms (VITL - Free Report) and Ollie's Bargain (OLLI - Free Report) .
Casey's General Stores, the third largest convenience retailer and fifth largest pizza chain in the United States, currently sports a Zacks Rank #1 (Strong Buy). CASY has a trailing four-quarter earnings surprise of 17.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Casey's current financial-year sales and earnings suggests growth of around 0.3% and 9%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 145%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29% from the year-ago reported figure.
Ollie's Bargain, America’s largest retailer of closeout merchandise and excess inventory, currently carries a Zacks Rank #2. Ollie's Bargain has a trailing four-quarter earnings surprise of 7%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and earnings suggests growth of 15.1% and 74.7%, respectively, from the year-ago reported numbers.