Costco's Stellar December Sales Reflect Operational Strength

Costco's Sales Performance - Costco's comparable sales in the US, excluding gasoline prices and foreign exchange rates, increased by 9.8% in December, while Canada and Other International markets saw gains of 10.3% and 9.8%, respectively [1] - Total comparable sales, excluding external factors, rose by 9.9% [1] - For the five weeks ended Jan 5, comparable sales in the US grew by 9.3%, with Canada and Other International markets increasing by 4.3% and 1%, respectively [7] - Total company comparable sales for December rose by 7.4%, following consecutive increases of 3.1% and 5.1% in November and October [7] - Costco's e-commerce comparable sales surged by 34.4%, or 35.7% when adjusted for gasoline prices and foreign exchange fluctuations [8] - E-commerce sales were positively impacted by approximately 15 percentage points due to the timing of Thanksgiving, Black Friday, and Cyber Monday [8] - Net sales for December increased by 9.9%, reaching $27.52 billion, up from$25.03 billion in the same period last year [9] Costco's Business Model and Market Position - Costco's membership-based structure and high renewal rates are key growth drivers, ensuring customer loyalty and competitive pricing [10] - The company's efficient supply chain management and bulk purchasing power contribute to its operational excellence [10] - Shares of Costco have advanced by 37.8% in the past year, outperforming the Retail – Discount Stores industry's rise of 21.9% [10] Investment Opportunities in Related Companies - Freshpet Inc (FRPT) has a trailing four-quarter earnings surprise of 144.5% on average, with current financial-year sales and earnings expected to grow by 27.2% and 228.6%, respectively [3] - United Natural Foods (UNFI) has a trailing four-quarter earnings surprise of 553.1% on average, with current financial-year sales and earnings projected to grow by 0.3% and 442.9%, respectively [4] - Sprouts Farmers (SFM) has a trailing four-quarter earnings surprise of 15.3% on average, with current financial-year sales and earnings expected to grow by 12.2% and 29.6%, respectively [5]