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Labor judge says Costco's confidentiality agreement for handling employee complaints is unlawful
Business Insider· 2025-05-08 21:16
Core Viewpoint - Costco's internal investigation policies are criticized for being overly broad and potentially infringing on employee rights, particularly regarding confidentiality agreements that employees must sign when raising complaints [1][7]. Group 1: Case Background - The case involves Jessica Georg, who filed a sexual harassment complaint against a co-worker in 2022 using Costco's "Open Door" policy [2]. - Georg was required to sign a confidentiality agreement that prohibited her from discussing the matter with coworkers, which raised concerns about the implications for employee rights [3][6]. Group 2: Legal Arguments - Costco's lawyer argued that confidentiality rules are designed to protect the integrity of investigations and encourage candid employee statements, especially in the retail industry [4]. - The lawyer emphasized that the rules are not meant to deter discussions about wages, working conditions, or union formation [5]. Group 3: NLRB Findings - The NLRB found that the individual Georg complained about had multiple prior complaints against him, and Georg expressed concerns that sharing information could jeopardize her job [6]. - NLRB attorneys suggested that a more tailored confidentiality agreement could protect sensitive information while ensuring workers' rights against harassment [7]. Group 4: Judge's Decision - Judge Gollin proposed that Costco post a notice in the warehouse where the violation occurred, as the NLRB did not conclusively prove that similar confidentiality forms were used across all US locations [8]. - The case will proceed to the NLRB's board, with exceptions to the decision due by June 2 [8].
Costco Wholesale (COST) 2025 Update / Briefing Transcript
2025-05-07 21:15
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]
Costco Wholesale Corporation Reports April Sales Results
Globenewswire· 2025-05-07 20:15
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]
Is Costco Stock a Long-Term Buy?
The Motley Fool· 2025-05-01 10:10
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 ...
1 Monster Stock That Turned $10,000 Into $2.2 Million
The Motley Fool· 2025-04-26 13:10
Company Overview - Costco has generated a total return of 22,000% over the past 40 years, translating a $10,000 investment in April 1985 to $2.2 billion today, with an annualized gain of 14.4% [1] - The company operates 897 locations globally, with a focus on providing quality merchandise at affordable prices [3] Growth and Expansion - Costco's store count has grown from 221 in 1994, with plans for nearly half of new store openings to occur outside the U.S. [4] - Same-store sales increased by 6.8% in Q2, marking at least 13 consecutive years of growth in this key metric [5] - Diluted earnings per share have grown at a compound annual rate of 11.6% over the past 20 years, with expectations of 11.1% growth from fiscal 2024 to fiscal 2027 [6] Competitive Position - Costco is the third-largest retailer globally, generating $62.5 billion in net sales during the 12-week period ending Feb. 16 [8] - The company benefits from significant buying leverage due to its scale and a limited number of stock-keeping units, which allows for cost savings passed on to consumers [9] - Membership households increased by 6.8% in the latest fiscal quarter, with a high renewal rate of 90.5% [9] Investment Considerations - Current share prices are down 9% from their February peak, but the price-to-earnings ratio stands at 57, which is near its highest level ever [10] - The high valuation may hinder potential returns, suggesting that investors should be cautious about purchasing the stock at this time [11]
Costco Wholesale Corporation Reports March Sales Results
Globenewswire· 2025-04-09 20:15
Core Insights - Costco reported net sales of $25.51 billion for March 2025, marking an 8.6% increase from $23.48 billion in March 2024 [1] - For the first 31 weeks of the fiscal year, net sales reached $158.87 billion, up 8.3% from $146.64 billion in the same period last year [1] Sales Performance - Comparable sales for the five weeks ended April 6, 2025, were as follows: - U.S.: 7.5% - Canada: 4.1% - Other International: 2.9% - Total Company: 6.4% - E-commerce: 16.2% [1] - For the 31 weeks, comparable sales were: - U.S.: 7.0% - Canada: 4.9% - Other International: 3.0% - Total Company: 6.1% - E-commerce: 16.8% [1] Adjusted Comparable Sales - Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange for the five weeks were: - U.S.: 8.7% - Canada: 10.6% - Other International: 9.9% - Total Company: 9.1% - E-commerce: 17.5% [1] - For the 31 weeks, adjusted comparable sales were: - U.S.: 8.0% - Canada: 8.9% - Other International: 8.9% - Total Company: 8.3% - E-commerce: 17.7% [1] Additional Context - March 2025 had one additional shopping day compared to the previous year due to the calendar shift of Easter, positively impacting total and comparable sales by approximately 1.5% [1] - Costco operates 903 warehouses globally, with 623 located in the U.S. and Puerto Rico [3]
Costco(纪要):目前未见明显通胀,但要警惕关税影响
海豚投研· 2025-03-08 12:19
| Costco quarterly results wrap | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | $ '00 mn | 1023 | 2024 | 3024 | 4024 | 1025 | 2025 | 2025E | 2023 | 3025 | 4023 | 1024 | Var. | Total revenue | 544 | ਦੇ ਫੇ ਤੇ | ਦੇਤ ਦ | 789 | 578 | ਦੇ8 4 | રે 8 ટ | 797 | 622 | 637 | ୧30 | 1.1% | | 8.196 | ર રેત્રેસ | 2.0% | ਰੇਂ ਦੇ ਦੇ | 6.2% | 5.7% | 9.1% | 1.0% | 7. ...
Costco(COST) - 2025 Q2 - Earnings Call Transcript
2025-03-07 02:03
Financial Data and Key Metrics Changes - Net income for Q2 2025 was $1.788 billion or $4.02 per diluted share, up from $1.743 billion or $3.92 per diluted share in the same quarter last year, reflecting an 8.4% growth when excluding a prior year tax benefit [17][18] - Operating income increased by 12.3% year-over-year, while net sales rose to $62.53 billion, a 9.1% increase from $57.33 billion [21][18] - Membership fee income grew by 7.4% year-over-year to $1.193 billion, with a 9.4% increase when excluding foreign exchange impacts [25] Business Line Data and Key Metrics Changes - US comparable sales increased by 8.3%, while Canada comp sales rose by 4.6% [21] - E-commerce comp sales surged by 20.9%, indicating strong growth in online sales [22] - Non-foods category saw mid-teens comparable sales growth, with significant performance in consumer electronics and gaming products [38] Market Data and Key Metrics Changes - Traffic increased by 5.7% worldwide and 5.6% in the US, with average transaction value up by 1% globally [23] - Foreign exchange negatively impacted sales by approximately 2.1%, while gas price deflation had a minor impact of 0.1% [22] - International business, particularly in Canada, delivered record results on a constant currency basis despite foreign exchange fluctuations [13] Company Strategy and Development Direction - The company plans to open 28 new warehouses in fiscal year 2025, with a focus on expanding gas station hours to enhance member convenience [9][10] - A new employee agreement was implemented to provide industry-leading pay and benefits, reflecting the company's commitment to its workforce [11][12] - The company aims to leverage its global buying power and strong supplier relationships to maintain value for members amid inflationary pressures [14] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers remain focused on quality and value, with a willingness to spend, although they are becoming more selective [66] - The company is closely monitoring the impact of tariffs and inflation on consumer behavior and is prepared to adjust strategies accordingly [67][86] - Management expressed confidence in the long-term growth potential of international markets, with plans for continued expansion [101] Other Important Information - Capital expenditures for Q2 were approximately $1.14 billion, with an estimated full-year CapEx of around $5 billion [38] - The company reported a slight increase in gross margin, with a reported rate of 10.85% for Q2 [29] - Inflation was noted to be low single digits overall, with fresh foods experiencing the highest inflation [46][140] Q&A Session Summary Question: Impact of consumer behavior on discretionary and non-discretionary spending - Management indicated that consumers are still willing to spend but are more selective, particularly in light of rising prices for certain goods [66] Question: Core margin trends and inflationary pressures - Management stated that while core on core margins were down slightly, overall gross margin improved, and they remain committed to investing in member value [78] Question: Weather impact on sales - Management acknowledged some weather-related impacts but noted that they were able to recover most of the sales lost due to adverse weather conditions [85] Question: Strategy regarding tariffs and sourcing - Management indicated a dual strategy of accepting some cost increases while also seeking alternative sourcing options to mitigate tariff impacts [92] Question: Long-term international growth prospects - Management expressed optimism about international growth, with plans for new warehouse openings in various global markets [101] Question: Performance of general merchandise and electronics - Management noted that while consumer electronics are experiencing sluggish growth, there are opportunities for innovation and market share growth [107] Question: Kirkland Signature product introductions - Management highlighted the potential for growth in non-food categories and the strategic approach to introducing new Kirkland Signature items [120]
Costco Wholesale (COST) 2025 Update / Briefing Transcript
2025-02-05 22:02
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]