Costco Wholesale (COST 2.06%) has emerged as one of the world's most successful retailers. Its strategy of selling high-quality bulk goods at competitive prices and razor-thin margins has built the company a loyal customer base.However, Costco's focus on offering the lowest possible prices does not necessarily apply to its stock. Thus, investors need to take a closer look at the company and its financials to know whether Costco will be an obvious buy in 2025.Costco's businessFew can argue with the success o ...

Costco Wholesale (COST) 2025 Update Summary Industry and Company Overview - The conference call pertains to Costco Wholesale, a leading retail company known for its membership-based warehouse club model [1] Core Points and Arguments - **Sales Performance**: - Net sales for January reached $19.51 billion, marking a 9.2% increase from $17.87 billion in the same month last year [3] - Comparable sales in the U.S. increased by 9.2%, while Canada saw a 5.7% increase, and other international markets reported a 1.1% increase [3] - E-commerce sales grew by 13.6% [3] - **Comparable Sales Excluding Gas and FX**: - Comparable sales excluding the impacts of gasoline prices and foreign exchange were as follows: U.S. at 9.2%, Canada at 12.3%, and other international at 10% [3] - **Traffic and Frequency**: - Comparable traffic increased by 7.1% globally and in the U.S. [4] - **Impact of Foreign Exchange**: - Foreign currency fluctuations negatively impacted total and comparable sales, with Canada down approximately 7.6% and other international down approximately 9.1% [4] - **Gas Price Inflation**: - Gas price inflation positively impacted total reported comparable sales by approximately 0.1% [5] - **Average Transaction Value**: - The average worldwide selling price per gallon of gas increased by approximately 1.2% year-over-year, with the average transaction value up about 0.4% [5] Merchandise Highlights - **Category Performance**: - Food and sundries showed positive high single-digit growth, with strong performance in cooler, candy, and frozen foods [6] - Fresh foods increased by low double digits, particularly in meat and produce [7] - Non-food items also saw low double-digit growth, with notable performance in gift cards, toys, seasonal items, and jewelry [7] - Ancillary business sales rose by mid single digits, with pharmacy, optical, and food court being the top performers [7] Forward-Looking Statements - The February reporting period will cover the four weeks from February 3 to March 2, with results to be announced alongside Q2 quarterly results on March 6 [8] Additional Information - The call included forward-looking statements that involve risks and uncertainties, which may cause actual results to differ from those projected [2] - The company does not commit to updating forward-looking statements except as required by law [2]

ISSAQUAH, Wash., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $19.51 billion for the retail month of January, the four weeks ended February 2, 2025, an increase of 9.2 percent from $17.87 billion last year. Net sales for the first 22 weeks were $113.55 billion, an increase of 8.2 percent from $104.94 billion last year. Comparable sales for the periods ended February 2, 2025, were as follows: 4 Weeks 22 WeeksU.S.9.2% 6. ...

Core Viewpoint - Costco Wholesale Corporation has reached a new 52-week high, raising questions about whether to take profits or remain invested, driven by strong fundamentals such as membership growth and pricing power [1][2]. Performance Metrics - The stock hit a peak of $1,009.61, closing at $1,005.83, reflecting a 41.4% increase over the past year, outperforming the industry and S&P 500, which rose 21.8% and 23.8% respectively [2]. - Costco's stock is currently trading above its 50-day and 200-day moving averages, indicating strong upward momentum and price stability [5]. Membership and Pricing Power - Costco's membership model is a key revenue driver, with renewal rates exceeding 90% in the U.S. and Canada, showcasing customer retention through competitive pricing and quality products [7]. - Comparable sales growth was reported at 7.4% in December, following increases of 3.1% and 5.1% in the preceding months [8]. Operational Efficiency - The company maintains low operating costs while delivering high-quality goods, allowing it to operate on thin margins but with greater volume [9]. - Costco opened six net new warehouses in the first quarter of fiscal 2025, with four located outside the U.S., indicating international expansion [9]. E-commerce Growth - E-commerce comparable sales grew 13% in the first quarter, driven by Costco Logistics, which specializes in large items, and the U.S. app saw 2.9 million downloads in the quarter [10]. Earnings Estimates - The Zacks Consensus Estimate for earnings per share has been revised upward, with current and next fiscal year estimates at $18.01 and $19.66, reflecting year-over-year growth rates of 11.8% and 9.2% respectively [11]. Valuation Analysis - Costco's forward 12-month price-to-earnings ratio is 53.73, significantly higher than the industry average of 33.94 and the S&P 500's 22.46, indicating a premium valuation [14]. - The premium reflects investor confidence in Costco's ability to sustain growth and maintain its competitive edge [15]. Investment Outlook - Costco's strong fundamentals, resilient business model, and consumer loyalty position it well for long-term growth, despite its premium stock price [16].

Given its proximity to many consumers, you've most likely shopped at a Costco (COST 2.65%) or Home Depot (HD -0.78%) warehouse. With combined annual revenue in the hundreds of billions of dollars, these businesses are two gigantic retailers.Due to their dominant positions, Costco and Home Depot might be on your investing radar. Of the two, what is the top retail stock to buy right now?Taking Costco for grantedCostco continues to hum along, supporting a long-running track record of steady growth. Revenue and ...

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ToplineCostco and the International Brother of Teamsters union came to a tentative three-year contract agreement at the 11th hour, averting a strike that would have affected operations at more than 50 Costco stores starting today, according to the Associated Press.CHICAGO, ILLINOIS - JANUARY 31: Customers shop at a Costco Wholesale store on January 31, 2025 in ... [+] Chicago, Illinois. According to a company memo, the company plans to increase pay for most of its hourly workers to more than $30-per-hour. T ...

Core Points - A potential strike involving 18,000 Costco workers was averted with a tentative agreement reached by the Teamsters union just before the deadline [1] - The Teamsters union had previously voted overwhelmingly to authorize a walkout due to stalled contract negotiations, citing Costco's significant profits of $7.4 billion last year [2][3] - The union has demanded substantial wage increases and better benefits, emphasizing that workers would not continue past January 31 without a favorable agreement [2][3] Company Actions - Costco announced pay increases for most store employees, with top scale employees receiving a $1 hourly increase to $30.20, and a commitment to annual $1 increases over the next two years [6] - Employees at the bottom of the wage scale will see a $0.50 increase to $20 an hour [6] - The company's CEO, Rich Vachris, received over $12 million in total compensation in 2024, which has drawn criticism from the union [4] Union Activities - The Teamsters union held practice pickets and rallies outside Costco's headquarters during the company's annual shareholder meeting, where their questions went unanswered [3][4] - Union representatives have accused Costco's negotiators of undercutting workers while corporate executives receive high salaries [4][5] Industry Context - Amidst a trend of large corporations rescinding diversity, equity, and inclusion policies, Costco has maintained its DEI policies despite threats from Republican state attorney generals [7]

Costco and the Teamsters union have reached a tentative deal to avoid a strike.Costco Teamsters represents 18,000 workers nationwide who were ready to walk off the job.The deal will now be presented to the union's membership for a vote, a Teamsters spokesperson told BI.Costco and the Teamsters union have reached a tentative agreement to avoid a strike, the union told Business Insider. The union said the deal would now go to its membership for a vote and that further details would follow.Costco Teamsters rep ...

Some 18,000 Costco workers might walk off the job on Saturday when their contract expires.Ahead of the deadline, Costco announced pay raises for non-union employees.That move might have unintended consequences, a legal expert told BI.The clock is ticking for Costco to strike a deal with 18,000 unionized warehouse workers threatening to strike. The company has been negotiating with the union, Costco Teamsters, ahead of the expiration of their existing contract at the end of the day on January 31.Against that ...