Recurring theme from retailers that have reported thus far. Some have raised prices because of it, including ELF last week. The National Retail Federation warning last week that the direct result of tariffs will be higher prices and fewer capital expenditures.But my next guest is staying positive into earnings. Joining me now is Chris Horver, retail analyst at JP Morgan. Chris, it's great to have you on the show.And let's start right there. What what is sparking the positivity. Well, it's a little bit of wh ...

Core Insights - Costco Wholesale Corporation (COST) demonstrated steady sales growth in July 2025, with comparable sales increasing by 6.4% year over year, following increases of 5.8% in June and 4.3% in May, indicating sustained momentum [1][8] - The growth was broad-based across regions, with U.S. comparable sales up 5.5%, Canada up 7.6%, and Other International markets up 9.5%. Adjusted for gasoline prices and foreign exchange, U.S. comps increased 6.5%, Canada jumped 9.1%, and Other International rose 7.5%, leading to a total company gain of 7% [2][8] - E-commerce sales saw a significant increase of 15.1%, reinforcing Costco's multi-channel growth strategy, building on previous months' gains of 11.5% in June and 11.6% in May [3][8] - July net sales rose 8.5% to $20.89 billion from $19.26 billion a year earlier, with total net sales for the first 48 weeks of fiscal 2025 reaching $248.35 billion, up 8.1% from the prior year [4][8] Competitor Analysis - Dollar General Corporation (DG) reported a 2.4% increase in same-store sales for the first quarter of fiscal 2025, driven by a 2.7% rise in average transaction amounts, despite a 0.3% decline in customer traffic. The company expects same-store sales to rise between 1.5% and 2.5% [5] - Target Corporation (TGT) experienced a 3.8% decline in comparable sales in the first quarter, attributed to a 5.7% fall in comparable store sales, offset by a 4.7% increase in comparable digital sales. Traffic dropped 2.4%, and average transaction amounts decreased 1.4% [6] Financial Metrics - Costco's stock has outperformed the market, with shares rallying 13.6% in the past year, compared to the industry's growth of 10.7% [7] - The forward 12-month price-to-earnings ratio for Costco stands at 49.49, higher than the industry average of 32.85, indicating a relatively high valuation [9] - The Zacks Consensus Estimate for Costco's current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively [10]

Core Insights - Costco operates a unique business model that requires customers to pay a membership fee for access, which significantly impacts its revenue structure and customer loyalty [1][3] - The membership renewal rate is a critical metric for Costco, typically around 90%, providing a stable annuity-like income stream [4][8] - Despite generating approximately $63.2 billion in total revenue in the fiscal third quarter of 2025, only about $1.2 billion, or less than 2%, came from membership fees [5] Revenue and Cost Structure - Membership fees contribute significantly to Costco's gross profit, accounting for around half of it, despite being a small portion of total revenue [8] - The cost of goods sold in the same quarter was nearly $55 billion, with additional operational costs of approximately $5.7 billion, leading to a gross profit of about $2.5 billion [7] - Membership fees have minimal associated costs, allowing them to flow directly into gross profit, enhancing the overall profitability of the company [6][8] Business Strategy and Customer Focus - Costco's membership model allows for lower margins on product sales, which helps maintain customer satisfaction and loyalty [9] - The company emphasizes strong employee relations to ensure high levels of customer service, reinforcing its focus on customer happiness as a means to drive membership renewals [10]

Core Insights - The closure of Hema X membership stores marks the end of Hema's attempt to create a Chinese version of Sam's Club, with the first store opening in October 2020 and all stores closing within five years [1] - Hema X membership stores initially expanded rapidly, reaching ten locations and accumulating nearly 3 million members, generating over 500 million yuan in annual membership fees [1][2] - The strategic decision to close Hema X stores is part of a broader plan to focus on Hema Fresh and neighborhood businesses, as the membership model did not align with the new strategy [2] Hema X Membership Store Performance - Hema X membership stores faced challenges as they offered many of the same products as regular Hema Fresh stores but at higher prices, undermining the value of membership fees [2] - Attempts to lower prices to attract customers led to a deviation from the high-end membership positioning, ultimately resulting in the suspension of membership renewals [2] Competitor Analysis - Sam's Club remains a leader in the industry, with membership numbers exceeding 5 million and annual membership revenue surpassing 1.3 billion yuan, despite facing quality complaints [2] - Costco's cautious expansion in China reflects challenges such as high logistics costs and poor product adaptability, resulting in a membership renewal rate below the global average [4] Industry Challenges - The development of membership retail in China faces hurdles, including consumer perception of membership value, localization issues, and operational efficiency [6] - The rise of instant retail is challenging traditional membership models, pushing retailers to enhance online capabilities and instant delivery services [6] Future Directions - The membership retail sector in China needs to reconstruct its value system, accelerate supply chain localization and digitalization, and explore diversified membership services [8] - Hema's exit serves as a warning to other players in the industry to prioritize quality and service alongside expansion efforts [8]

Costco Wholesale Corporation COST shares are trading relatively flat on Thursday.On Wednesday, the company reported net sales of $20.89 billion for the retail month of July, an increase of 8.5% from $19.26 billion last year.JP Morgan analyst Christopher Horvers reiterated the Overweight rating on the stock, raising the price forecast from $1,115 to $1,160.Horvers noted that Canada and Other International core comps significantly outpaced Street forecasts—9.1% versus 5.7% and 7.5% versus 6.4%—with the Northw ...

6 August 2025 | 5:57PM EDT Costco Wholesale (COST): July sales above expectations; traffic accelerated COST reported July SSS (ex-gas/FX) of +7.0%, above consensus (Consensus Metrix) at +5.7% and accelerating from +6.2% in June. US comps (ex-gas) came in at +6.5%, above consensus at +5.6% and +5.5% in June. COST noted the negative impact of cannibalization was ~50 bps for the company in July. Worldwide and US traffic accelerated Worldwide traffic accelerated at +4.3% in July (vs. +3.4% in June, +3.4% in May ...

新零售平台盒马决心放弃会员制商店的业态。 南都湾财社记者注意到，目前，盒马X会员店全国仅剩最后一家门店，但该店（上海森兰店）于近期发 布公告称将于8月31日停业。8月4日，南都湾财社就此事采访盒马，截至发稿前未得到回应。 盒马放弃效仿山姆早有苗头，今年以来，共有7家盒马X会员店停业，分布在上海、北京、南京和苏 州。针对X会员店相继停业，此前，盒马方面曾回应南都湾财社记者称，盒马主要重点将落在盒马鲜生 和盒马NB业态，并持续聚焦盒马鲜生业态的逆势扩张。 与之形成对比的是，以山姆、开市客为代表的会员制商超则加快在中国的拓店速度。山姆母公司沃尔玛 在财报中多次表扬山姆在华表现，最新一个财报季度，山姆会员商店中国的会员收入增长超过40%；开 市客相关负责人也告诉南都湾财社记者，公司持续推进在华拓店计划。 盒马最后一家X会员店将于8月底结业 盒马不再效仿山姆的相关话题曾于今年2月登上微博热搜。南都此前报道，今年2月28日，盒马在上海的 三家X会员店均宣布于4月1日停业。彼时，盒马向南都湾财社记者表示，盒马确实主动调整会员店，目 前主要重点在盒马鲜生和盒马NB业态，今年会持续聚焦盒马鲜生业态的逆势扩张，在新的财年将开出 ...

Company and Industry Summary Company Overview - The company reported net sales of $20.89 billion for the month, representing an increase of 8.5% from $19.26 billion in the same period last year [2] - Comparable sales for the month were reported as follows: US 5.5%, Canada 7.6%, Other International 9.5%, Total Company 6.4%, E-commerce 15.1% [2] Sales Performance - Comparable sales excluding impacts from gasoline prices and foreign exchange were: US 6.5%, Canada 9.1%, Other International 7.5%, Total Company 7%, E-commerce 14.9% [3] - Comparable traffic increased by 4.3% worldwide and in the US [3] - Foreign currency fluctuations positively impacted total and comparable sales, with Canada contributing approximately 0.3%, Other International 2.6%, and total company 0.4% [3] - Gas price deflation negatively impacted total reported comparable sales by approximately -1.0% [3] Pricing and Transaction Insights - The average worldwide selling price per gallon decreased by approximately -8.3% compared to last year [4] - The average transaction value increased by approximately 2%, factoring in gas deflation and foreign exchange [4] - Excluding gas deflation and foreign exchange, the average transaction value increased by about 2.6% [4] Regional Performance - Strongest comparable sales in the US were observed in the Northwest, Midwest, and Southeast regions [4] - Internationally, the best results were seen in Australia, Taiwan, and Mexico [5] Category Performance - Food and sundries showed positive mid-single-digit growth [5] - High single-digit growth was noted in fresh foods, particularly in meat and bakery categories [6] - Non-food categories also performed well, with high single-digit growth in gift cards, jewelry, and men's apparel [6] - Ancillary business sales declined by low single digits, while pharmacy, optical, and hearing aid departments were the top performers [7] - Gas sales experienced a decline in mid to high single digits due to year-over-year price changes [7] Future Outlook - The upcoming reporting period for August will cover four weeks from August 4 to August 31, compared to the previous year's period from August 5 to September 1 [7]

Key Takeaways COST grew FY25 EPS and sales estimates by 11.6% and 8.1%, supported by strong brand loyalty and execution.Kirkland Signature outpaced overall sales, with penetration up 50 bps, boosting brand-driven resilience.COST shares rallied 18.8% in a year, outpacing rivals despite trading at a premium P/E of 48.15.At a time when volatility continues to haunt, Costco Wholesale Corporation (COST) remains a poster child for defensive investing. The company's unique membership-based model and pricing discip ...

Core Insights - The Shanghai Hongqiao Qianwan Impression City MEGA has achieved over 70% leasing rate and is set to introduce over 350 quality lifestyle brands focusing on social gatherings, family interactions, pet-friendly activities, and outdoor sports by the end of the year [1] Group 1 - The project is the second Impression City MEGA in Shanghai, complementing the existing 48,000 square meters Costco China flagship store and the 110,000 square meters Hongqiao International Business Center [1] - The overall area of the super complex will reach 400,000 square meters, covering various scenarios including living, office, and retail [1]