Costco is already reaping the benefits after recently introducing membership card scanners at the front of warehouses in its U.S. stores, and the move is being well-received by customers, the wholesale club said Friday. During the retailer's fourth quarter earnings call, Costco CEO Ron Vachris noted that the company has used card readers at the front of its stores in Europe for more than two years now and has been piloting the system in the U.S. for roughly six months. Ticker Security Last Change Change % C ...

The retail giant's quarterly results came up a bit short on the top line.Shares of Costco Wholesale (COST -1.99%) were heading lower Friday after its fiscal fourth-quarter revenue came in slightly below estimates.Ahead of Thursday afternoon's report, the warehouse retailer was trading at a lofty valuation, so a pullback on its slight miss wasn't a surprise.As of 10:51 a.m. ET Friday, the stock was down 1.5% after having fallen by as much as 3% earlier in the session. Costco is solid, but it trades at a pre ...

We last wrote about Costco Wholesale (NASDAQ: COST ) (NEOE: COST:CA ) in April of 2024 with a sell rating . It is not that we dislike the company, we even had a buy rating in late 2022 when the forecast PE wasWe use Cash Flow Returns On Investment based DCF valuation tools provided by our affiliate company, ROCGA Research.With over 20 years of experience in investment analysis, we are actively seeking out undervalued and quality companies.ROCGA Research is an online platform that provides an objective and s ...

Costco shares are down slightly in premarket trading after disappointing same store sales numbers. ... [+] (Photo by Joe Raedle/Getty Images)Getty ImagesKey Takeaways S&P 500 Hits Its 42nd High, Signaling Broad Market Strength With 80% Stocks Above Moving Averages China's Stimulus Boosts Stocks, But Concerns Linger About Long-Term Effectiveness Of Government Intervention PCE Data Suggests Controlled Inflation, Possibly Giving The Fed Room For Future Interest Rate CutsStocks closed higher on Thursday as the ...

Costco (NASDAQ: COST ) shares keep moving up, now targeting $1,000. Whether or not Costco reaches $1,000 by the end of the year doesn't bother me. This is because I know it eventually will and because I have very little reason to believe II focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to realize that pr ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of COST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any i ...

Financial Data and Key Metrics - Net income for Q4 2024 was $2.354 billion, up 9% YoY, with earnings per diluted share at $5.29, compared to $4.86 in the previous year [10] - Net sales for Q4 2024 were $78.2 billion, a 1% increase YoY, or 7.3% when adjusted for the extra week in the previous year [11] - Comparable sales (comps) increased by 5.4% globally, with US comps up 5.3%, Canada up 5.5%, and other international markets up 5.7% [12] - E-commerce comp sales grew by 18.9%, or 19.5% when adjusted for FX [12] - Membership fee income increased by 0.2% to $1.512 billion, with a renewal rate of 92.9% in the US and Canada [13][14] Business Line Performance - E-commerce saw significant growth, with Costco Logistics delivering over 4.5 million items, up 29% YoY, driven by appliances and furniture [8] - Non-foods led core merchandising sales, with double-digit growth in categories like golden jewelry, gift cards, toys, and home furnishings [20] - Fresh departments saw high single-digit growth, with strong performance in meat, produce, and bakery [20][21] - Kirkland Signature products continued to grow faster than the overall business, with new items like organic maple syrup and aerosol whipped cream driving value [22] Market Performance - US comp sales increased by 5.3%, or 6.3% excluding gas deflation [12] - Canada comp sales rose by 5.5%, or 7.9% excluding gas deflation and FX [12] - Other international comp sales grew by 5.7%, or 9.3% when adjusted [12] - Gas sales were negatively impacted by a 5% decrease in average price per gallon, partially offset by a 3% increase in gallons sold [24] Company Strategy and Industry Competition - The company opened 29 net new warehouses in FY2024, with plans to open 26 net new buildings in FY2025, including 12 outside the US [7] - Costco is focusing on sustainability, with initiatives like reducing plastic packaging by 80% for Kirkland Signature laundry packs, leading to cost savings passed on to members [23] - The company is investing in technology, such as the Costco app and membership card scanners, to enhance the member experience and improve operational efficiency [9] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of investing in employees and members, with wage increases and price reductions as part of the strategy to drive top-line growth [31][32] - The company is optimistic about growth opportunities in digital capabilities, global warehouse expansion, and innovation with Kirkland Signature products [28] - Inflation was effectively flat in Q4, with food and sundries slightly inflationary, offset by deflation in non-foods [25] Other Important Information - The company introduced a membership fee increase effective September 1, 2024, with most of the financial impact expected in the second half of FY2025 and into FY2026 [27] - Costco Next, the curated marketplace, added 11 new vendors, bringing the total to 86, with gross sales growing nearly 40% YoY [27] Q&A Session Summary Question: SG&A Leverage and Wage Investments - The company aims to balance investments in employees and members while driving top-line growth and productivity to offset wage increases [31][32][33] Question: Impact of Membership Card Scanners - The card scanners have improved front-end productivity and member interactions, with some locations seeing double-digit increases in new sign-ups [35][44] Question: Port Strike Risk and Ocean Freight Rates - The company has contingency plans for potential port disruptions, with nonfoods being the most exposed category [38][39] - Freight rates are expected to stabilize, with most of Costco's freight under contract, insulating the company from spot market volatility [41] Question: Inflation and Deflation Expectations - Inflation was flat in Q4, with slight inflation in fresh foods and deflation in non-foods, driven by commodity price changes [67][68] Question: Consumer Behavior and Health - Consumers are prioritizing value and quality, with increased spending on non-food items as inflation dissipates [76][77] Question: E-commerce Penetration and Profitability - E-commerce penetration is in the high single digits, with profitability improving due to sales growth and fulfillment efficiency [85][88] Question: Competitive Pricing in Grocery - Costco remains focused on being the first to lower prices and the last to raise them, with a proactive approach to pricing [91][92] Question: Gas Prices and Traffic Impact - Gas price declines have not significantly impacted warehouse traffic, with gallons sold up 3% YoY [94] Question: Pre-Tax Margin and Profitability - The company focuses on driving top-line growth while finding efficiencies in gross margin and SG&A to improve profitability [97][98] Question: Gasoline Profitability - Gasoline margins are relatively stable, with no significant changes expected in the near term [105] Question: Average Wages - The average wage in the US and Canada is just over $30 per hour [107]

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Thursday, September 26th, 2024The S&P 500 notched a new all-time closing high Thursday, rising by +23 points or +0.40%, to 5745. And it was the laggard among major stock market indexes for the session: the Dow grew +260 points, +0.62%, while the Nasdaq gained +108, +0.60%, and the small-cap Russell 2000 +0.57% on the day.China Stimulus Brings Big GainsNew stimulus policies in China have helped spur some of that country’s biggest stocks notably higher today — and for the week. The big gains began on Tuesday ...

For the quarter ended August 2024, Costco (COST) reported revenue of $79.7 billion, up 1% over the same period last year. EPS came in at $5.15, compared to $4.86 in the year-ago quarter.The reported revenue represents a surprise of -0.07% over the Zacks Consensus Estimate of $79.75 billion. With the consensus EPS estimate being $5.05, the EPS surprise was +1.98%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectation ...