Costco Wholesale (COST) 2025 Update Summary Industry and Company Overview - The call pertains to Costco Wholesale, a leading retail company, focusing on its sales results for August 2025 and providing forward-looking statements regarding its performance and market conditions [1][2]. Core Points and Arguments - **Sales Performance**: - Net sales for August 2025 reached $21.56 billion, marking an increase of 8.7% from $19.83 billion in August 2024 [2]. - Comparable sales growth was reported as follows: - US: 6.1% - Canada: 6.8% - Other International: 6.7% - Total Company: 6.3% - E-commerce: 18.4% [2][3]. - **Comparable Sales Excluding Gas and FX**: - US: 6.7% - Canada: 9.4% - Other International: 5.3% - Total Company: 6.9% - E-commerce: 18.3% [3]. - **Traffic Growth**: - Comparable traffic increased by 4% globally and 4.3% in the US [3]. - **Impact of Foreign Currencies**: - The US dollar's fluctuations affected sales: - Canada: -1.2% - Other International: +1.7% - Total Company: +0.1% [4]. - **Gas Price Deflation**: - Gas price deflation negatively impacted total reported comparable sales by approximately -0.6%, with the average worldwide selling price per gallon down by about -5.2% year-over-year [4]. - **Average Transaction Value**: - The average transaction value increased by 2.2% worldwide, and by 2.7% when excluding gas deflation and foreign exchange impacts [4]. Regional and Merchandising Highlights - **Regional Performance**: - Strongest comparable sales in the US were observed in the Midwest, Southeast, and Northwest regions. - Internationally, Australia, Taiwan, and the UK showed the best results [5]. - **Cannibalization Impact**: - The negative impact of cannibalization on total company sales was approximately -60 basis points [5]. - **Merchandising Categories**: - Food and sundries showed positive mid-single-digit growth. - Fresh foods increased by mid to high single digits, with strong performance in meat and produce. - Non-foods experienced high single-digit growth, particularly in jewelry, majors, and garden categories. - Ancillary business sales rose by low single digits, with optical, pharmacy, and hearing aids being top performers. - Gas sales declined by mid-single digits due to price changes [6][7]. Future Outlook - The September reporting period will cover five weeks from September 1 to October 5, 2025. - Q4 and total year FY 2025 earnings will be released on September 25, 2025, with a conference call scheduled for 2 PM PT [8]. Additional Information - The call will remain available until 4 PM Pacific Time on September 11, 2025 [9].

Core Viewpoint - The article highlights Fabrinet as a promising growth stock, supported by its strong earnings growth, cash flow growth, and positive earnings estimate revisions, making it a suitable choice for growth investors [2][10]. Group 1: Earnings Growth - Fabrinet has a historical EPS growth rate of 25.6%, with projected EPS growth of 17.5% for the current year, surpassing the industry average of 15.9% [5][4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Fabrinet is 14.4%, significantly higher than the industry average of -14% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 5.1% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Fabrinet have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month [8]. - This positive trend in earnings estimate revisions contributes to Fabrinet's Zacks Rank of 2 (Buy) [10]. Group 4: Overall Positioning - Fabrinet's combination of a Growth Score of B and a Zacks Rank of 2 positions it well for potential outperformance in the market, making it an attractive option for growth investors [10].

Core Viewpoint - Fabrinet (FN) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by its strong historical performance in earnings surprises [1]. Company Performance - Fabrinet has a track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 3.00% [2]. - In the last reported quarter, Fabrinet achieved earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.47 per share, resulting in a surprise of 2.02% [3]. - For the previous quarter, the company was expected to report earnings of $2.51 per share but delivered $2.61 per share, yielding a surprise of 3.98% [3]. Earnings Estimates and Predictions - Estimates for Fabrinet have been trending upward, aided by its history of earnings surprises [6]. - The stock currently has a positive Zacks Earnings ESP of +1.14%, indicating increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8].