Stock-split euphoria took over Wall Street in 2024, and two brand-name companies could continue this trend in the new year.In case you haven't noticed, the stock market has been practically unstoppable in 2024. The iconic Dow Jones Industrial Average, benchmark S&P 500, and growth-focused Nasdaq Composite have reached multiple record highs and respectively risen by 17%, 27%, and 31% this year, as of the closing bell on Dec. 10.Although excitement surrounding the rise of artificial intelligence (AI) and Dona ...

Costco said it's seeing a boost in meat and produce sales.Costco's finance chief said in the Q1 2025 earnings call that there was a shift toward "food at home."The retailer posted strong growth this quarter, with sales increasing 7.5% from the year before.Americans are swapping dinners out for nights in, Costco said in its 2025 first-quarter results.Advertisement "I would say that we are seeing what we think is a little bit of a shift from food away from home to food at home," Costco's finance chief, Gary ...

Financial Data and Key Metrics - Net income for Q1 2025 was $1.798 billion, up from $1.589 billion in Q1 2024, representing a 9.9% growth excluding discrete tax items [16] - Net sales increased by 7.5% to $60.99 billion compared to $56.72 billion in the same quarter last year [17] - US comparable sales grew by 5.2%, or 7.2% excluding gas deflation, while Canada comp sales increased by 5.8%, or 6.7% adjusted for gas deflation and FX [17] - E-commerce comp sales surged by 13%, or 13.2% adjusted for FX [18] - Membership fee income rose by 7.8% to $1.166 billion, driven by growth in paid memberships [20] Business Line Performance - US bakery division sold a record 4.2 million pies in the three days before Thanksgiving [10] - US food courts sold 274,000 whole pizzas on Halloween, a 21% increase year-over-year [10] - US pharmacy business saw prescription growth exceed 19%, setting new volume records [11] - Costco Logistics completed nearly 1 million deliveries in Q1, with over 196,000 deliveries in the last week alone, a new record [11] - Fresh food sales led the way with high single-digit growth, while non-foods also saw high single-digit growth despite calendar shifts [31][32] Market Performance - US comp sales grew by 5.2%, or 7.2% excluding gas deflation [17] - Canada comp sales increased by 5.8%, or 6.7% adjusted for gas deflation and FX [17] - Other international comp sales rose by 4.7%, or 7.1% adjusted for gas deflation and FX [17] - E-commerce comp sales grew by 13%, or 13.2% adjusted for FX [18] Strategic Direction and Industry Competition - The company plans to open 29 new warehouses in fiscal 2025, with 10 located outside the US [9] - Costco continues to focus on delivering value through Kirkland Signature products, with price reductions on items like organic peanut butter and chicken stock [34] - The company is investing in retail media, with a successful campaign achieving 2-3x the expected return on ad spend [45] - Costco is also enhancing its digital capabilities, with the US app downloaded 2.9 million times in Q1, bringing total downloads to approximately 42 million [43] Management Commentary on Operating Environment and Future Outlook - Management noted that inflation was essentially flat in Q1, with slight inflation in food and sundries offset by deflation in non-foods [40] - The company is monitoring potential port strikes in India, the East Coast, and Canada, and adapting plans to ensure inventory availability [42] - Costco expects to continue growing its digital business, with e-commerce traffic, conversion rates, and average order value all increasing year-over-year [43] Other Important Information - The company opened seven new warehouses in Q1, including one relocation, and plans to open 29 new warehouses in fiscal 2025 [7][9] - Costco's sustainability commitments were updated and made available online, reflecting progress toward sustainability objectives [14] - The company's renewal rates were slightly impacted by higher growth in digital sign-ups, which renew at a lower rate than the base [22] Q&A Summary Question: Consumer Health and Seasonal Inventory - The company noted strong performance in non-food categories, with double-digit growth in gold, jewelry, gift cards, and home furnishings [52] - Seasonal sell-through was strong, with furniture, appliances, and sporting goods driving e-commerce sales [55] Question: Traffic Growth and Retail Media - Traffic increased by 5.1% worldwide, with items per basket up 2% in the US and worldwide [60] - Retail media is seen as an incremental opportunity, with early success in off-site campaigns [63] Question: Core Margin Performance - Core margins were up 17 basis points excluding gas deflation, driven by mix and the credit card co-brand program [116] - The company continues to invest in price reductions, particularly for Kirkland Signature products [72] Question: Membership Renewal Rates and Digital Sign-ups - Digital sign-ups are renewing at a slightly lower rate than the base, impacting overall renewal rates [79] - Costco Next, the company's exclusive member-only marketplace, is expected to enhance member relationships [81] Question: Stock Split and Tariffs - The company has no current plans for a stock split but will continue to evaluate the option [89] - Tariffs are seen as a cost-raising factor, but the company is prepared to manage through inventory adjustments and alternative sourcing [92] Question: CapEx and Growth Strategy - CapEx for fiscal 2025 is estimated at $5 billion, with continued investment in new warehouses and technology [101] - The company plans to open 30 warehouses annually, with a significant portion outside the US [112] Question: E-commerce Penetration and Private Label - E-commerce penetration is around 7-8% of total sales, with private label penetration reaching 33% in the US [135][137] Question: Competitive Landscape - The company sees itself as its own biggest competitor, with new warehouse openings driving incremental growth [153] - Scan and Go technology is not currently a priority, with focus on improving the front-end experience [158] Question: New Categories and Margin Impact - New categories like precious metals and gift cards are driving traffic and cross-selling, with no need to offset margin impact through other items [170] Question: Affluent Shopper Wallet Share - The company believes it has the right to earn more wallet share with higher-income shoppers through quality and value offerings [180] Question: Partnerships with Instacart and Uber - Partnerships with Instacart and Uber are growing strongly, enhancing delivery speed and convenience for members [191] Question: Labor Relations - The company is committed to fair and timely negotiations with the Teamsters union, maintaining a 40-year track record of positive relations [195] Question: International Performance - International performance remains strong, with no significant changes in regional trends [202] Question: Digital Business and Online Presence - The company is focused on improving its online presence, with recent enhancements to search functionality and inventory visibility [206] - Digital sign-ups are growing, but executive membership conversions are lower online due to lack of employee interaction [211]

Costco is proving that its digital transformation is more than just a buzzword — it’s driving growth. As the company continues to enhance its eCommerce offerings and streamline member experiences, its first-quarter results (Q3 by the calendar) for fiscal 2025 illustrate a combination of solid online performance and in-store success.Digital growth played a major role Thursday (Dec. 12) during the company’s earnings call as eCommerce sales rose 13%, site traffic grew 16%, and average order value increased 4%. ...

Costco (COST) reported $62.15 billion in revenue for the quarter ended November 2024, representing a year-over-year increase of 7.5%. EPS of $3.82 for the same period compares to $3.48 a year ago.The reported revenue represents a surprise of +0.17% over the Zacks Consensus Estimate of $62.05 billion. With the consensus EPS estimate being $3.79, the EPS surprise was +0.79%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Thursday, December 12, 2024Stock market indexes had a down day from the start: higher producer prices from November’s PPI report and a notable increase in Weekly Jobless Claims ahead of the open today set the scene. We’re still near all-time highs on the major indexes, so taking a breather with less-than-stellar economic prints seems perfectly reasonable.Attention will now turn to next week’s Federal Open Market Committee (FOMC) meeting, where on Wednesday afternoon the latest decision on interest rates wil ...

Costco (COST) came out with quarterly earnings of $3.82 per share, beating the Zacks Consensus Estimate of $3.79 per share. This compares to earnings of $3.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.79%. A quarter ago, it was expected that this warehouse club operator would post earnings of $5.05 per share when it actually produced earnings of $5.15, delivering a surprise of 1.98%.Over the last four quarters, the com ...

Costco beat expectations for its fiscal first-quarter earnings, with net sales growth of 7.5%.Comparable sales growth was largely driven by increased traffic.The company ended the quarter with nearly 139 million membership cardholders, up 7.2% over last year.People just can't get enough of Costco — even as membership fees went up.Advertisement The wholesale club beat Wall Street's expectations Thursday, posting fiscal first-quarter net sales of $60.99 billion, up 7.5% from the same period last year.Compara ...

Costco Wholesale (COST) reported fiscal first-quarter earnings that beat analysts’ expectations, in its first quarterly results reflecting the impact of its hike in membership fees. The membership-based retailer saw revenue grow 7.5% to $62.15 billion, just above the analyst consensus from Visible Alpha. Net income of $1.8 billion or $4.04 per share was up from $1.59 billion or $3.58 per share a year earlier and exceeded expectations.   Costco's e-commerce sales increased 13%, while same-store sales were u ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...