Galanti responded by explaining that while the membership-based discount retailer could raise its membership fees, it wouldn’t make sense to do so now as the retailer seeks to continue providing consumers with value. While Galanti retains the belief that Costco could raise fees without hampering demand, it is preferable to allow the company’s other “profit and sales drivers” to do the bulk of Costco’s income generation.

Questions surrounding Costco’s membership fees come after the discount retailer reported third-quarter earnings per share that missed Wall Street estimates. The company’s same-store sales for the period edged 0.1% lower.

While Galanti maintains that Costco’s decision to maintain its membership fees is not due to fears of crippling demand, Walmart’s chief executive Doug McMillon insists that higher grocery prices have had an undoubted impact on consumer demand. “The persistently high rates of inflation in these categories lasting for such a long period of time are weighing on some of the families we serve,” McMillon stated during his company’s latest earnings call.

The post Costco Keeps Membership Fees Constant Amid Rise in Grocery Prices appeared first on theprimarymarket.com.

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.

The post Costco Shares Down Following Mixed Earnings Results appeared first on theprimarymarket.com.

Total revenue for the quarter was $54.44 billion, narrowly missing analysts’ estimates of $54.64 billion. This translates to an adjusted earning per share of $3.10; short of the forecast $3.11.

Merchandise costs for the warehouse store rose by approximately 9% to $47.77 billion, which is a change that is largely attributed to increased freight and labor costs.

Quarterly revenue for memberships, priced from $60 to $120 per year, increased from $946 million to $1 billion. This income stream provided much relief for the retail giant, considering that memberships account for the majority of the company’s gross margin.

Following the release of its quarterly results, Costco’s shares fell to $480.35 during extended trading.

Costco’s financial slide follows the ongoing trend of most major U.S. retail companies, with major competitors Target Corp and Dollar Tree Inc also experiencing a decline in demand for goods such as toys and electronics as high inflation and price rise drive down consumer spending.

The post Costco Quarterly Results Miss Targets Amid Falling Consumer Spending appeared first on theprimarymarket.com.

While the stock has been largely sold off by investors, Costco is expected to make gains once the report is released. According to projections, the big box store company is expected to announce revenue of $71.84 billion; a 15% quarter-on-quarter increase. Adjusted profit for the period is expected to be up 5% to $4.11 a share.

The company has delivered a strong financial performance as of late, with August sales of $17.55 billion; an 11% year-on-year increase from 2021. Same-store sales were also on the up with an 8.7% rise for the month.

In May, when the company released its previous earnings report. Costco’s stock gained over 6%. This was largely driven by the company’s 2% rise in adjusted profit to $2.91 as well as its 16.8% rise in revenue to $52.6 billion.

Another stock that will be monitored closely by investors this week is Darden Restaurants, the parent company of the Olive Garden, Yard House, and LongHorn Steak House. Darden Restaurants is also set to release its earnings report later this week.

The post Costco Stocks Sold En Masse Ahead Of Quarterly Earnings Report appeared first on theprimarymarket.com.

Katai believes the fair value for Costco shares is $579 per share, which was 15 percent more than the value of the stock at the time when the note was sent. However, COST surged more than 4 percent since then to close at 522.95 on Friday.

“Costco is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop,” said Katai in a note sent out on Thursday.

Costco showed its resilience and consistency in a report shared earlier this month that revealed net sales of $22.78 billion for June. This was a 20.4 percent increase in net sales compared to the $18.92 billion in the same period of 2021. Most importantly, the wholesale retailer recorded an increase across all departments. This was a lot better performance than most competitors, who went on to show substantial weaknesses caused by surging inflation and looming recession.

The post Deutsche Bank Upgrades Costco Stock to “Buy” appeared first on theprimarymarket.com.

Galanti responded by explaining that while the membership-based discount retailer could raise its membership fees, it wouldn’t make sense to do so now as the retailer seeks to continue providing consumers with value. While Galanti retains the belief that Costco could raise fees without hampering demand, it is preferable to allow the company’s other “profit and sales drivers” to do the bulk of Costco’s income generation.

Questions surrounding Costco’s membership fees come after the discount retailer reported third-quarter earnings per share that missed Wall Street estimates. The company’s same-store sales for the period edged 0.1% lower.

While Galanti maintains that Costco’s decision to maintain its membership fees is not due to fears of crippling demand, Walmart’s chief executive Doug McMillon insists that higher grocery prices have had an undoubted impact on consumer demand. “The persistently high rates of inflation in these categories lasting for such a long period of time are weighing on some of the families we serve,” McMillon stated during his company’s latest earnings call.

The post Costco Keeps Membership Fees Constant Amid Rise in Grocery Prices appeared first on theprimarymarket.com.

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.

The post Costco Shares Down Following Mixed Earnings Results appeared first on theprimarymarket.com.

Total revenue for the quarter was $54.44 billion, narrowly missing analysts’ estimates of $54.64 billion. This translates to an adjusted earning per share of $3.10; short of the forecast $3.11.

Merchandise costs for the warehouse store rose by approximately 9% to $47.77 billion, which is a change that is largely attributed to increased freight and labor costs.

Quarterly revenue for memberships, priced from $60 to $120 per year, increased from $946 million to $1 billion. This income stream provided much relief for the retail giant, considering that memberships account for the majority of the company’s gross margin.

Following the release of its quarterly results, Costco’s shares fell to $480.35 during extended trading.

Costco’s financial slide follows the ongoing trend of most major U.S. retail companies, with major competitors Target Corp and Dollar Tree Inc also experiencing a decline in demand for goods such as toys and electronics as high inflation and price rise drive down consumer spending.

The post Costco Quarterly Results Miss Targets Amid Falling Consumer Spending appeared first on theprimarymarket.com.

While the stock has been largely sold off by investors, Costco is expected to make gains once the report is released. According to projections, the big box store company is expected to announce revenue of $71.84 billion; a 15% quarter-on-quarter increase. Adjusted profit for the period is expected to be up 5% to $4.11 a share.

The company has delivered a strong financial performance as of late, with August sales of $17.55 billion; an 11% year-on-year increase from 2021. Same-store sales were also on the up with an 8.7% rise for the month.

In May, when the company released its previous earnings report. Costco’s stock gained over 6%. This was largely driven by the company’s 2% rise in adjusted profit to $2.91 as well as its 16.8% rise in revenue to $52.6 billion.

Another stock that will be monitored closely by investors this week is Darden Restaurants, the parent company of the Olive Garden, Yard House, and LongHorn Steak House. Darden Restaurants is also set to release its earnings report later this week.

The post Costco Stocks Sold En Masse Ahead Of Quarterly Earnings Report appeared first on theprimarymarket.com.

Katai believes the fair value for Costco shares is $579 per share, which was 15 percent more than the value of the stock at the time when the note was sent. However, COST surged more than 4 percent since then to close at 522.95 on Friday.

“Costco is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop,” said Katai in a note sent out on Thursday.

Costco showed its resilience and consistency in a report shared earlier this month that revealed net sales of $22.78 billion for June. This was a 20.4 percent increase in net sales compared to the $18.92 billion in the same period of 2021. Most importantly, the wholesale retailer recorded an increase across all departments. This was a lot better performance than most competitors, who went on to show substantial weaknesses caused by surging inflation and looming recession.

The post Deutsche Bank Upgrades Costco Stock to “Buy” appeared first on theprimarymarket.com.