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Costco (COST) Continues with Positive Comparable Sales Trend

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Costco Wholesale Corporation (COST - Free Report) has continued to post positive comparable-store sales (comps) so far this year. Comps for four-week ended Apr 30, 2017 increased 3%, following an increase of 6% in March, 4% in February and 7% in January. The company generated net sales of $9.42 billion in April, up 5% year over year. Notably, net sales increased 9%, 8% and 9% in March, February and January, respectively.

We note that shares of Costco have climbed roughly 12.3% year to date, and has comfortably outperformed the Zacks categorized Retail-Discount & Variety industry’s growth of 1.4%.



Comps for April reflect an increase of 4% and 2% at the U.S. and Other International locations, respectively, partially offset by 1% decline in Canada. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 3%. The company recorded comps increase of 3%, 3% and 5% at the U.S., Canada and Other International locations, respectively.

For the 35-week period ended Apr 30, 2017, Costco reported 3% jump in comps, reflecting an increase of 3% and 5% at the U.S. and Canadian locations, respectively, and flat comps at Other International locations. Net sales for the period came in at $82.24 billion, an increase of 6% from the year-ago period.

Costco, which faces stiff competition from Wal-Mart Stores Inc. (WMT - Free Report) , operates 729 warehouses, comprising 508 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 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) sporting a Zacks Rank #1 (Strong Buy) and Best Buy Co., Inc. (BBY - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Children's Place had delivered an average positive earnings surprise of 39% in the trailing four quarters and has a long-term earnings growth rate of 8%.

Best Buy had delivered an average positive earnings surprise of 27.7% in the trailing four quarters and has a long-term earnings growth rate of 10.8%.

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