The results were presented with a positive lens based on 'comparable sales' growth, and the stock reacted positively. However, underlying the comparable sales result, the trends are more challenging, with challengesLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dy ...

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 ...

Costco Wholesale (COST) 2025 Update Summary Industry Overview - The call pertains to the retail industry, specifically focusing on Costco Wholesale's performance during the five-week retail month of June 2025. Key Financial Metrics - **Net Sales**: Reported net sales for June 2025 were $26.44 billion, representing an 8% increase from $24.48 billion in June 2024 [2] - **Comparable Sales**: - US: 4.7% - Canada: 6.7% - Other International: 10.9% - Total Company: 5.8% - E-commerce: 11.5% [2] - **Comparable Sales Excluding Gas and FX**: - US: 5.5% - Canada: 7.9% - Other International: 8.2% - Total Company: 6.2% - E-commerce: 11.2% [3] Traffic and Transaction Insights - **Traffic Growth**: Comp traffic increased by 3.4% worldwide and 2.8% in the US [4] - **Average Transaction Value**: - Worldwide average transaction value increased by 2.4%, and by 2.8% when excluding gas deflation and foreign exchange impacts [5] Regional Performance - **Strongest US Regions**: Northwest, Midwest, and Southeast showed the best comparable sales performance [5] - **International Performance**: Australia, Mexico, and Taiwan reported the strongest results among other international markets [6] Merchandising Highlights - **Food Categories**: - Foods and sundries showed positive mid-single-digit growth - Fresh foods increased by high single digits, with meat and produce being top performers [6][7] - **Non-food Categories**: - Positive mid to high single-digit growth, with jewelry, majors, and gift cards performing well [7] - **Ancillary Business Sales**: Experienced a decline in low single digits, while pharmacy, hearing aid, and optical departments were top performers [8] External Factors Impacting Sales - **Gas Price Deflation**: Negatively impacted total reported comparable sales by approximately -0.9% [4] - **Foreign Currency Impact**: - Canada: +0.2% - Other International: +3.4% - Total Company: +0.5% [4] Future Outlook - The next reporting period will cover four weeks from July 7 to August 3, 2025, compared to the same period in 2024 [8]

Core Viewpoint - JPMorgan analyst Christopher Horvers has lowered estimates for Lowe's Companies Inc. ahead of its first-quarter earnings release, indicating a more challenging environment than previously anticipated [1][4]. Group 1: First Quarter Estimates - First-quarter comparable sales estimates for Lowe's have been cut to -2.7%, which is below the Street's consensus of -1.7% and broader buyside expectations of a decline between 2% to 3.5% [1][2]. - Lowe's had previously guided for a -2% comparable sales for the first quarter and expected flat comps for the first half, anticipating a ~$400 million shift of spring sales into the second quarter [2][3]. Group 2: Weather Impact - The company faced significant headwinds from unfavorable DIY weather conditions earlier in the quarter, leading to underperformance compared to Home Depot, even as weather conditions improved later [2][3]. - The second quarter is expected to have easier weather comparisons, but estimates have been slightly lowered to +2% from +3% due to first-quarter underperformance and uncertain weather outlook [3]. Group 3: Earnings and Guidance - The estimated first-quarter EPS for Lowe's is $2.87, compared to the Street's estimate of $2.91 [3]. - Given the expectation of missing the first-quarter outlook, Lowe's is anticipated to adjust its full-year guidance towards the lower end of flat comparable sales and around a 12.3% operating margin [4]. - The company is expected to reiterate confidence in managing tariffs and safeguarding margins despite a less favorable scenario [4].

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]