Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to ...

Investment Rating - The report assigns a "Buy" rating to Costco Wholesale (COST) with a 12-month price target of $1,133, indicating an upside potential of 7.3% from the current price of $1,055.59 [9][10]. Core Insights - Costco's May same-store sales (SSS) growth was +6.0%, slightly below the consensus estimate of +6.2% and down from +6.7% in April. U.S. comparable sales (ex-gas) were +5.5%, also below the consensus of +6.4% and down from +7.1% in April. The company noted a negative impact from cannibalization of approximately 70 basis points in May [1]. - Worldwide traffic growth decelerated to +3.4% in May, compared to +4.2% in April. U.S. traffic growth also slowed to +2.8% from +5.0% in April, while global ticket sales (ex-gas/FX) increased by an estimated +2.6% [2]. Sales Performance - The report highlights that the Fresh category saw high-single-digit growth, driven by strong performance in meat and bakery. Food & Sundries grew mid-single-digit to high-single-digit, while non-foods increased mid-single-digit. The ancillary business, however, decreased low-single-digit to mid-single-digit [8]. Financial Metrics - The report provides financial forecasts for Costco, projecting revenues of $254.45 billion for the current year, increasing to $310.24 billion by 2027. EBITDA is expected to grow from $11.52 billion to $15.45 billion over the same period. The earnings per share (EPS) is forecasted to rise from $16.56 to $21.51 [10].

Investment Rating - The report assigns a "Buy" rating to Xtep International Holdings with a 12-month price target of HK$7.00, indicating an upside potential of 19.9% from the current price of HK$5.84 [10][11]. Core Insights - The company has reiterated its full-year guidance, expecting positive sales growth at the group level, with Saucony and Merrell brands projected to achieve 30%-40% sales growth and over 10% year-on-year net profit growth [2][10]. - Xtep's core business has maintained stable discount levels in the second quarter of 2025, attributed to healthy inventory levels [7][10]. - Management believes that Xtep's established brand recognition and ecosystem provide a competitive advantage in the growing running category [7][10]. Summary by Sections Full Year Guidance - The company expects to deliver positive sales growth at the group level, with Saucony and Merrell brands projected to achieve 30%-40% sales growth and over 10% year-on-year net profit growth [2][10]. Xtep Core - The discount level has remained stable in the second quarter of 2025 due to healthy inventory levels, and the brand is focusing on maintaining stable profit margins [7][10]. Saucony Brand - In the second half of 2025, management anticipates a broader product assortment to meet functional and fashion demands, including new fabrics and an increased focus on women's products, aiming to raise the female sales mix from 10-20% to 30% within the next 1-2 years [4][8]. - The company aims to double Saucony's revenue by 2027 through store expansion, targeting 30-50 new stores annually and enhancing store productivity [4][8].