Summary of Conference Call Company Overview - The conference call was led by Andrew Yoon, director of finance and investor relations, discussing sales results for the retail month of April, comparing it to the same period last year [1] Key Financial Metrics - Net sales for April reached $21.18 billion, marking a 7% increase from $19.8 billion in the previous year [2] - The month had one less shopping day compared to last year due to the shift in Easter, negatively impacting total and comparable sales by approximately 1.5% to 2% [2] Comparable Sales Performance - Reported comparable sales for April were as follows: - US: 5.2% - Canada: 1.5% - Other International: 3.2% - Total Company: 4.4% - E-commerce: 12.6% [3] - Comparable sales excluding impacts from gasoline prices and foreign exchange were: - Total Company: 6.7% - E-commerce: 13% [3] - Comp traffic increased by 4.2% worldwide and 5% in the US [3] Impact of External Factors - Foreign currency fluctuations negatively impacted total and comparable sales: - Canada: -1.6% - Other International: -2.5% - Total Company: -0.6% [3] - Gas price deflation negatively impacted total reported comparable sales by approximately -1.7%, with the average worldwide selling price per gallon down about 13.4% year-over-year [4] Regional Performance - Strongest comparable sales in the US were observed in the Midwest, Northeast, and Southeast regions [5] - Internationally, the best results were seen in Mexico, Korea, and Taiwan [5] Merchandise Highlights - Foods and sundries showed positive high single-digit growth [5] - Better performing departments included: - Fresh foods: high single digits - Meat and bakery: strong performance - Non-foods: mid to high single digits, with jewelry, majors, and home furnishings performing well [6] - Ancillary business sales were down mid to high single digits, while pharmacy, optical, and food court were the top performers [7] Future Outlook - The May reporting period will cover the four weeks beginning May 5 and ending June 1, compared to the same period last year [7]

Core Insights - Costco reported net sales of $21.18 billion for April 2025, a 7.0% increase from $19.80 billion in April 2024 [1] - For the first 35 weeks of the fiscal year, net sales reached $180.05 billion, up 8.2% from $166.44 billion in the same period last year [1] - Comparable sales for the four weeks ended May 4, 2025, showed a total company increase of 4.4%, with U.S. sales up 5.2% and Canadian sales up 1.5% [1][2] Sales Performance - Comparable sales excluding gasoline price and foreign exchange impacts were 6.7% for the four weeks and 8.1% for the first 35 weeks [2] - E-commerce sales saw significant growth, with a 12.6% increase for the four weeks and a 16.3% increase for the first 35 weeks [1][2] Operational Insights - Costco operates 905 warehouses globally, with 624 located in the U.S. and Puerto Rico, and additional locations in Canada, Mexico, Japan, the U.K., and other countries [4] - The company also runs e-commerce sites in multiple countries, including the U.S., Canada, and Australia [4] Calendar Impact - April 2025 had one less shopping day compared to the previous year due to the Easter calendar shift, negatively impacting total and comparable sales by approximately 1.5% to 2% [3]

Core Viewpoint - Costco Wholesale Corporation is currently trading at a high forward P/E multiple of 52.96X, indicating it may be overvalued compared to the industry average of 32.41X and the S&P 500's 20.97 [1][7] Valuation and Performance - The stock has risen 11.9% over the past month, outperforming its peers, but this steep increase may limit near-term upside potential [2][3] - Costco's valuation is above its median P/E level of 50 observed over the past year, suggesting caution for new investors [1][7] Membership and Growth - Costco ended Q2 of fiscal 2025 with 78.4 million paid household members, a 6.8% year-over-year increase, with executive memberships growing by 9.1% [9] - Membership fee income increased by 7.4%, aided by a recent fee hike contributing approximately 3% growth in the quarter [9] E-commerce and Digital Transformation - E-commerce comparable sales grew by 20.9% in Q2, reflecting the success of Costco's digital transformation strategy [10] - The company is enhancing its online product assortment and fulfillment efficiencies to drive traffic and sales [10] Expansion Plans - Costco plans to open 28 new locations by the end of fiscal 2025, including 25 new warehouses and three relocations [11] Competitive Landscape - Costco is outperforming competitors like Ross Stores, Dollar General, and Target, which are also investing in enhancing customer experience [12] - The competitive environment is intensifying, necessitating continued focus on maintaining margins and managing operational costs [13] Financial Estimates - The Zacks Consensus Estimate for the current fiscal year has risen to $17.96, while the estimate for the next fiscal year has decreased to $19.73, indicating expected growth rates of 11.5% and 9.9% respectively [14]

Company Performance - Costco's stock closed at $1,014.89, reflecting a +0.65% change, outperforming the S&P 500's daily loss of 0.64% [1] - Over the past month, Costco shares have increased by 10.02%, significantly surpassing the Retail-Wholesale sector's gain of 0.16% and the S&P 500's gain of 0.38% [1] Upcoming Earnings Report - Costco is set to release its earnings report on May 29, 2025, with analysts expecting earnings of $4.25 per share, indicating a year-over-year growth of 12.43% [2] - The consensus estimate for revenue is projected at $63 billion, representing a 7.67% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates predict earnings of $17.96 per share and revenue of $274.3 billion, reflecting year-over-year changes of +11.48% and +7.8%, respectively [3] - Recent changes to analyst estimates for Costco are noted, as positive revisions typically indicate optimism regarding the company's business and profitability [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Costco currently holds a rank of 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate for Costco has increased by 0.09% [5] Valuation Metrics - Costco's Forward P/E ratio stands at 56.16, which is a premium compared to the industry average of 21.93 [6] - The company has a PEG ratio of 6.02, compared to the Retail - Discount Stores industry's average PEG ratio of 2.65 [6] Industry Context - The Retail - Discount Stores industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 94, placing it in the top 39% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

COST rises throughout the session after alertCostco, Inc. (COST) today experienced a Power Inflow, a significant event for those who follow where smart money goes and value order flow analytics in their trading decisions. Today, at 10:03 AM on May 5th, a significant trading signal occurred for Costco, Inc. (COST) as it demonstrated a Power Inflow at a price of $1006.24. This indicator is crucial for traders who want to know directionally where institutions and so-called "smart money" moves in the market. Th ...

Core Viewpoint - Costco has been trending positively in the stock market, outperforming the S&P 500 and the discount retail industry, raising questions about its future stock performance [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Costco is $4.25 per share, reflecting a year-over-year increase of +12.4% with a recent change of +0.5% in the consensus estimate [4] - For the current fiscal year, the consensus earnings estimate is $17.96, indicating a change of +11.5% from the previous year, with a slight change of +0.1% over the last 30 days [4] - The next fiscal year's consensus earnings estimate stands at $19.73, showing a change of +9.9% from the prior year, with no change in the estimate over the past month [5] Revenue Growth Forecast - Costco's consensus sales estimate for the current quarter is $63 billion, representing a year-over-year change of +7.7% [10] - The sales estimates for the current and next fiscal years are $274.3 billion and $292.89 billion, indicating changes of +7.8% and +6.8%, respectively [10] Last Reported Results and Surprise History - In the last reported quarter, Costco achieved revenues of $63.72 billion, a year-over-year increase of +9%, with an EPS of $4.02 compared to $3.71 a year ago [11] - The reported revenues exceeded the Zacks Consensus Estimate of $63.22 billion by +0.79%, while the EPS fell short by -1.71% [11] - Over the last four quarters, Costco surpassed consensus EPS estimates three times and revenue estimates two times [12] Valuation - Costco is graded D in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether Costco's stock is overvalued or undervalued [14][15] Bottom Line - The information presented may assist in evaluating the market interest surrounding Costco, with a Zacks Rank of 3 suggesting it may perform in line with the broader market in the near term [17]

What could be better than a big sale at your favorite retail store? That's right -- a meaty dividend raise from one of your favorite retail stocks. In recent weeks, not one but two powerful companies in the sector upped their quarterly payouts: Costco Wholesale (COST 0.66%) and TJX Companies (TJX -0.07%). What's more, both lifted their dividends by double-digit percentages.Here's what this could all mean for investors.1. CostcoSeveral days after reporting its fiscal 2025 second-quarter results, Costco pulle ...

Costco (COST 0.33%) has been an outstanding holding for investors. In the past 40 years, shares have climbed 14,540%, crushing the S&P 500 index. Including dividends, the gains are even more impressive.This top retail enterprise has many attractive qualities that can draw in investors looking to own a great business. But is Costco a worthy long-term buy right now?Costco's advantagesCostco is a top-notch company. It has become a favorite among consumers looking to score huge savings on a variety of merchandi ...

The stock market is in turmoil due to tariffs this year, and one sector that's taking a big hit is retail. The SPDR S&P Retail ETF has declined by more than 14% since January, as investors worry about rising costs yet again for many retailers. Even if prices don't increase, a recession could lead to consumers pulling back on purchases. Skipping a trip to Costco can sometimes be an easy way to save money by avoiding the temptation to purchase a lot more than you intended. If consumers do that and Costco's gr ...

Core Viewpoint - Costco's stock performance has shown resilience, with a recent increase and positive earnings expectations, indicating a favorable outlook for the company in the retail sector [1][2][3]. Company Performance - Costco's stock closed at $991.70, reflecting a +1.34% increase, outperforming the S&P 500's gain of 0.58% [1]. - Over the past month, Costco shares have appreciated by 3.46%, contrasting with the Retail-Wholesale sector's decline of 0.19% and the S&P 500's loss of 0.84% [1]. - The upcoming earnings report on May 29, 2025, is anticipated to show earnings of $4.24 per share, representing a year-over-year growth of 12.17% [2]. - For the fiscal year, earnings are projected at $17.95 per share, with revenue expected to reach $274.23 billion, marking increases of +11.42% and +7.77% respectively from the previous year [3]. Analyst Estimates - Recent changes in analyst estimates for Costco are crucial, as they reflect short-term business trends and can indicate optimism about the company's outlook [4]. - The Zacks Rank system, which incorporates these estimate changes, currently rates Costco at 3 (Hold), with a recent upward shift of 0.06% in the consensus EPS estimate [6]. Valuation Metrics - Costco has a Forward P/E ratio of 54.51, significantly higher than the industry average of 21.76, suggesting that Costco is trading at a premium [7]. - The company also has a PEG ratio of 5.84, compared to the Retail - Discount Stores industry's average PEG ratio of 2.71, indicating a higher valuation relative to expected earnings growth [8]. Industry Context - The Retail - Discount Stores industry, part of the broader Retail-Wholesale sector, holds a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [9].