Stock futures dipped ahead of a closely watched jobs report that is expected to show a significant cooling of the labor market in February. Economists forecast the U.S. added 198,000 jobs last month, a big drop from 353,000 the month before. But economists weren't expecting job growth to be nearly that robust in January and the labor market has been defying expectations for years. Costco (COST) fell in premarket trading after it reported slower sales growth than analysts had been expecting in its 2024 fisc ...

Costco Wholesale Corporation (COST) came up with second-quarter fiscal 2024 results, wherein the top line missed the Zacks Consensus Estimate but increased year over year. Conversely, the bottom line not only beat the consensus mark but also improved from the year-ago period. Comparable sales also displayed a decent improvement, with the growth rate accelerating on a sequential basis. Costco's e-commerce sales also showcased a sharp rise.Q2 Earnings & Sales PictureCostco's second-quarter adjusted earnings p ...

Financial Data and Key Metrics Changes - Reported net income for Q2 2024 was $1.743 billion or $3.92 per diluted share, up from $1.466 billion or $3.30 per diluted share in Q2 2023, reflecting an increase of 18.9% [4] - Net sales for Q2 2024 were $57.33 billion, a 5.7% increase from $54.24 billion in Q2 2023, negatively impacted by approximately 1.5% due to the shift of the fiscal calendar [5] - Membership fee income was $1.111 billion, up $84 million or 8.2% year-over-year [6] Business Line Data and Key Metrics Changes - Comparable sales in the US were reported at 4.3%, with a 4.8% increase when excluding gas, deflation, and foreign exchange impacts [5] - E-commerce sales increased by 18.4% reported and 18.2% excluding foreign exchange [5] - Membership growth continued, with 73.4 million paid household members, up 7.8% year-over-year [7] Market Data and Key Metrics Changes - Comparable sales in Canada were 9.2%, and other international markets reported 8.6% [5] - Traffic increased by 5.3% worldwide and 4.3% in the US [6] - Average transaction value was up 0.3% worldwide and 0.1% in the US [6] Company Strategy and Development Direction - The company plans to open 30 new warehouses in fiscal 2024, including 15 in the second half of the year [15] - E-commerce initiatives are being enhanced, including the launch of a new mobile app and the introduction of same-day delivery in China [20][15] - The company is focused on maintaining its culture of prioritizing customers and employees while ensuring shareholder value [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance metrics, indicating that most are trending positively [42] - The company is taking proactive measures to manage costs and improve operational efficiency [56] - Inflation is currently flat, and the company is actively reducing prices where possible [22] Other Important Information - The effective tax rate for Q2 was 22.1%, benefiting from a tax deductibility of a special dividend [13] - The company is experiencing strong performance in e-commerce, particularly in big-ticket items [44] - The CFO, Richard Galanti, will retire on March 15, 2024, with Gary Millerchip succeeding him [28] Q&A Session Summary Question: Membership price increase framework - Management indicated that a membership price increase is likely but not imminent, depending on various business metrics [31] Question: Consistency of comparable sales - Management acknowledged that while sales have been consistent, they are focused on maintaining productivity and market share [34] Question: Company culture and leadership transition - Management reassured that the company culture will remain intact with the new leadership team [38] Question: Membership metrics and saturation - Management stated that all metrics are currently positive, with no signs of saturation in mature locations [42] Question: Discretionary business improvement - Management noted significant improvements in discretionary categories, attributing this to aggressive pricing strategies [44] Question: Kirkland brand penetration - Management reported increased penetration of the Kirkland brand, with no significant trade-down observed [48] Question: Costco Logistics delivery performance - Management highlighted the growth in Costco Logistics, with improved delivery times and increased drops [50] Question: E-commerce penetration including Instacart - Management indicated that Instacart contributes an additional 1.5% to 2% to e-commerce penetration [74]

Costco (COST) reported $58.44 billion in revenue for the quarter ended February 2024, representing a year-over-year increase of 5.8%. EPS of $3.71 for the same period compares to $3.30 a year ago.The reported revenue represents a surprise of -1.28% over the Zacks Consensus Estimate of $59.2 billion. With the consensus EPS estimate being $3.60, the EPS surprise was +3.06%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Costco (COST) came out with quarterly earnings of $3.71 per share, beating the Zacks Consensus Estimate of $3.60 per share. This compares to earnings of $3.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.06%. A quarter ago, it was expected that this warehouse club operator would post earnings of $3.45 per share when it actually produced earnings of $3.48, delivering a surprise of 0.87%.Over the last four quarters, the com ...

As retailers compete for consumers’ omnichannel loyalty, Costco is driving digital growth with a somewhat unconventional approach — selling precious metals.The membership warehouse club chain shared in its second quarter fiscal 2024 financial results Thursday (March 7) that digital sales were up 18.4% in the quarter, and much of that growth comes from its sales of precious metals.“eComm showed strength in several areas led by sales of gold and very recently silver as well,” Costco CFO Richard Galanti told a ...

Key TakeawaysCostco reported better-than-expected earnings for the second quarter of fiscal 2024, but revenue growth was lower than analysts had anticipated.Net income came in at $1.74 billion, or $3.92 per diluted share, compared to the $1.62 billion or $3.62 per share that analysts estimated. The bottom line included a tax benefit equal to $0.21 per share.Net sales for the period rose 5.7% to $57.33 billion, below the consensus view of $57.92 billion.Costco shares fell more than 4% in after-hours trading. ...

Costco on Thursday missed Wall Street's revenue expectations for its holiday quarter, despite reporting year-over-year sales growth and strong e-commerce gains.Shares of the retailer fell about 4% in aftermarket trading. The retailer's stock had hit a 52-week high earlier in the day.The company offered few details on its quarterly performance in a news release, but will hold an investor call at 5 p.m. ET.Here's what the retailer reported for its fiscal second quarter of 2024 compared with what Wall Street w ...

Key PointsWith international growth leading the business, Walmart provides some diversification, including Sam's Membership Clubs.BJ's Wholesale Club is a deep value in the membership club industry and it is widening margin. PriceSmart is a pure play on clubs and emerging markets in Latin America; it raised its dividend by 26%, and another large increase is expected this year. 5 stocks we like better than Costco WholesaleMembership clubs have been leading the retail sector in growth, but there is a shadow o ...

With several of its Zacks Retail-Discount Industry peers already posting strong quarterly results this week, Costco’s (COST)  stock is moving higher ahead of its fiscal second quarter report on Thursday, March 7.Notably, Ross Stores (ROST)  and Target (TGT)  were able to comfortably top earnings expectations on Wednesday with the ladder seeing its stock spike over +10% yesterday. Let’s see if it’s time to buy into Costco’s momentum with COST shares soaring +17% year to date as the large bulk retailer hopes ...