HomeFinancial MarketsCostco Shares Down Following Mixed Earnings Results

Costco Shares Down Following Mixed Earnings Results

Costco shares were down by 2% after the market’s close on Thursday night after the company released its fiscal second-quarter earnings results. The big box retailer’s earnings results appeared mostly mixed, however, most metrics beat expectations.

Revenue for the period was $55.27 billion, narrowly missing out on Wall Street estimates of $55.58 billion. Adjusted earnings per share of $3.30 beat Wall Street’s expectations of $3.21, however, as did net sales, rising 6.5% to $54.24 billion, up from $50.04 billion.

Same store sales beat Wall Street estimates at large, with all same-store sales rising by 6.8%, outperforming expectations of a 6.16% increase. U.S. same store sales grew 5.8%, versus a 5.56% estimate, while Canadian sales far exceeded an expected 5.51% rise, surging by 9.6%. Other international sales grew by 9.5%, exceeding Wall Street estimates of a 7.1% rise.

Among the product categories that saw significant sales growth in the second quarter were fresh food, food, and sundry categories. Non-food items such as apparel, jewelry, and electronics saw a drop-off.

CEO Craig Jelinek explained on a call with investors that this is a result of consumers choosing to focus their spending on essential items.

S&P 500 Hits New Record as Dow Surges

Stocks on the New York Stock Exchange surged on Wednesday to recover from several days of declines. The S&P 500 surged by 0.8% to...

GameStop Stock Plunges Following Slump in Revenue

Shares in GameStop plummeted by 16% in extended trading after the company announced its fourth-quarter earnings. Revenue was $1.79 billion, down from last year's...

Tesla Offers One-Month Trial of Driver-Assist Technology

Electric vehicle maker Tesla is set to offer a one-month free trial to U.S. customers of its driver-assist technology, Full Self-Driving (FSD), CEO Elon...