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 April
Read MoreHide Full Article
Costco Wholesale Corporation (COST - Free Report) continues to excel due to its strategic growth initiatives, effective pricing strategies and steady membership trends. These factors have propelled the company's performance, leading to decent sales figures.
Sales Performance Overview
In April, Costco reported an increase in comparable sales, with 5.6% growth during the four-week period ended May 5, 2024. This follows consecutive increases of 7.7% and 5% in March and February, respectively. Comparable sales in the United States, Canada and Other International locations saw improvements of 5.8%, 5.2% and 5.1%, respectively.
Excluding the impacts of changes in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 5.5% on improvements of 5.2%, 5.9% and 7% in the United States, Canada and Other International locations, respectively.
E-commerce sales also surged, marking a 14.6% increase year over year or 14.8%, excluding the impact of gasoline prices and foreign exchange.
Costco’s net sales increased 7.1% to $19.8 billion for the retail month of April from $18.48 billion last year. This followed an improvement of 9.4% and 6.9% witnessed in March and February, respectively.
This year’s April performance was impacted by the shift in the timing of Easter, resulting in a slight decrease of just more than 0.5% in both total and comparable sales.
Image Source: Zacks Investment Research
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 34.7% in the past six months compared with the Retail – Discount Stores industry’s rise of 27.6%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Target Corporation (TGT - Free Report) and Tractor Supply Company (TSCO - Free Report) .
Sprouts Farmers, a renowned grocery retailer, sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 9.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of around 8.1% and 8.5%, respectively, from the year-ago reported numbers.
Target, a general merchandise retailer in the United States, currently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 27.1%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings suggests growth of around 5% from the year-ago reported numbers.
Tractor Supply, which operates as a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. Tractor Supply has a trailing four-quarter earnings surprise of 2.7%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and earnings suggests growth of 3% and 2.3%, 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 April
Costco Wholesale Corporation (COST - Free Report) continues to excel due to its strategic growth initiatives, effective pricing strategies and steady membership trends. These factors have propelled the company's performance, leading to decent sales figures.
Sales Performance Overview
In April, Costco reported an increase in comparable sales, with 5.6% growth during the four-week period ended May 5, 2024. This follows consecutive increases of 7.7% and 5% in March and February, respectively. Comparable sales in the United States, Canada and Other International locations saw improvements of 5.8%, 5.2% and 5.1%, respectively.
Excluding the impacts of changes in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 5.5% on improvements of 5.2%, 5.9% and 7% in the United States, Canada and Other International locations, respectively.
E-commerce sales also surged, marking a 14.6% increase year over year or 14.8%, excluding the impact of gasoline prices and foreign exchange.
Costco’s net sales increased 7.1% to $19.8 billion for the retail month of April from $18.48 billion last year. This followed an improvement of 9.4% and 6.9% witnessed in March and February, respectively.
This year’s April performance was impacted by the shift in the timing of Easter, resulting in a slight decrease of just more than 0.5% in both total and comparable sales.
Image Source: Zacks Investment Research
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 34.7% in the past six months compared with the Retail – Discount Stores industry’s rise of 27.6%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Target Corporation (TGT - Free Report) and Tractor Supply Company (TSCO - Free Report) .
Sprouts Farmers, a renowned grocery retailer, sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 9.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of around 8.1% and 8.5%, respectively, from the year-ago reported numbers.
Target, a general merchandise retailer in the United States, currently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 27.1%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings suggests growth of around 5% from the year-ago reported numbers.
Tractor Supply, which operates as a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. Tractor Supply has a trailing four-quarter earnings surprise of 2.7%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and earnings suggests growth of 3% and 2.3%, respectively, from the year-ago reported numbers.