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Costco Continues with its Positive Comparable Sales Trend
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After reporting flat comparable-store sales (comps) in August, Costco Wholesale Corporation (COST - Free Report) has continued to post positive comps so far. Comps for the four-week period ended Feb 26, 2017 increased 4%, following an increase of 7% in January, 3% in December, 1% in November, 2% in October and 1% in September. The company generated net sales of $8.92 billion in February, up 8% year over year. Notably, net sales increased 9% in January, 5% in December, 3% in November, 4% in October and 3% September.
We note that shares of Costco have climbed roughly 13.5% since Oct 5, 2016, when the company reported September sales results. In fact, in the past six months, the stock has advanced 9.5% and comfortably outperformed the Zacks categorized Retail-Discount & Variety industry that inched up 0.7% in the same time frame. However, the stock came under pressure after the company reported lower-than-expected second-quarter fiscal 2017 results, and fell 4.3% last Friday. (Read: Costco Earnings and Revenues Miss Estimates in Q2)
Nevertheless, Comps for February reflect an increase of 5% and 10% at the U.S. and Canadian locations, respectively, partially offset by 2% decline at Other International locations. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 2%. The company recorded comps increase of 2% at both the U.S. and Canadian locations, partially offset by 1% decline at Other International locations.
For the 26-week period ended Feb 26, 2017, Costco reported 3% jump in comps, displaying an increase of 3% and 6% at the U.S. and Canadian locations, respectively, partially offset by 1% decline at Other International locations. Net sales for the period came in at $61.18 billion, an increase of 5% from the year-ago period.
Costco, which faces stiff competition from Wal-Mart Stores Inc. (WMT - Free Report) , operates 728 warehouses, comprising 508 warehouses in the U.S. and Puerto Rico, 94 in Canada, 37 in Mexico, 28 in the UK, 25 in Japan, 13 in Korea, 13 in Taiwan, eight in Australia, and two in Spain.
Children's Place delivered an average positive earnings surprise of 36.3% in the trailing four quarters and has a long-term earnings growth rate of 10.3%.
Burlington Stores delivered an average positive earnings surprise of 26.3% in the trailing four quarters and has a long-term earnings growth rate of 15.9%.
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In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Costco Continues with its Positive Comparable Sales Trend
After reporting flat comparable-store sales (comps) in August, Costco Wholesale Corporation (COST - Free Report) has continued to post positive comps so far. Comps for the four-week period ended Feb 26, 2017 increased 4%, following an increase of 7% in January, 3% in December, 1% in November, 2% in October and 1% in September. The company generated net sales of $8.92 billion in February, up 8% year over year. Notably, net sales increased 9% in January, 5% in December, 3% in November, 4% in October and 3% September.
We note that shares of Costco have climbed roughly 13.5% since Oct 5, 2016, when the company reported September sales results. In fact, in the past six months, the stock has advanced 9.5% and comfortably outperformed the Zacks categorized Retail-Discount & Variety industry that inched up 0.7% in the same time frame. However, the stock came under pressure after the company reported lower-than-expected second-quarter fiscal 2017 results, and fell 4.3% last Friday. (Read: Costco Earnings and Revenues Miss Estimates in Q2)
Nevertheless, Comps for February reflect an increase of 5% and 10% at the U.S. and Canadian locations, respectively, partially offset by 2% decline at Other International locations. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 2%. The company recorded comps increase of 2% at both the U.S. and Canadian locations, partially offset by 1% decline at Other International locations.
For the 26-week period ended Feb 26, 2017, Costco reported 3% jump in comps, displaying an increase of 3% and 6% at the U.S. and Canadian locations, respectively, partially offset by 1% decline at Other International locations. Net sales for the period came in at $61.18 billion, an increase of 5% from the year-ago period.
Costco, which faces stiff competition from Wal-Mart Stores Inc. (WMT - Free Report) , operates 728 warehouses, comprising 508 warehouses in the U.S. and Puerto Rico, 94 in Canada, 37 in Mexico, 28 in the UK, 25 in Japan, 13 in Korea, 13 in Taiwan, eight in Australia, and two in Spain.
Zacks Rank
Costco currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the retail space are The Children's Place, Inc. (PLCE - Free Report) and Burlington Stores, Inc. (BURL - Free Report) both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Children's Place delivered an average positive earnings surprise of 36.3% in the trailing four quarters and has a long-term earnings growth rate of 10.3%.
Burlington Stores delivered an average positive earnings surprise of 26.3% in the trailing four quarters and has a long-term earnings growth rate of 15.9%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>