Costco posted much stronger-than-expected sales data for the month of September.
Costco said net sales for the five weeks ending on October 5 were up 16.9% from last year at $16.84 billion, while comparable store sales surged by a much better-than-expected 15.5%. E-commerce sales, Costco said, rose by staggering 90.3% from last year as customers increasingly used online shopping, as well as curbside pickup, to buy home-based staples amid the coronavirus pandemic.
“September sales were positively impacted by two holiday shifts, Labor Day in the U.S. and Chuseok/Moon Festival in Asia,” Costco said in a statement. “The estimated positive impact on September sales was slightly less than 100 basis points worldwide, half relating to each holiday.”
The September sales figures extended a trend the Costco updated last month with stronger-than-expected fiscal fourth quarter earnings of $3.04 per share, a 13% increase from last year, as revenues reached $52.3 billion thanks
Costco (COST) shares were drilled to the tune of 3% on Friday after delivering what looked to be an impressive fiscal fourth quarter. The company posted quarterly earnings some 33 cents ahead of analyst estimates, powered by an unworldly 11.4% same-store sales gain. Costco members flocked to warehouses to keep their cupboards stocked up as they continue to spend more time at home during the COVID-19 pandemic. Executives pointed out on an earnings call that it believes the pandemic has brought in new Costco members, too.
To round out the on-paper positives, Costco topped $4 billion in net earnings for the first time in its fiscal year and enters its new fiscal year armed with a $12.3 billion cash war chest.
Then why the selloff in Costco’s stock? Simply put, analysts appear not too pleased Costco continues to pay its workers what has
A resurfaced interaction between Costco’s co-founder and CEO has sent Twitter into hysterics and turned the co-founder into an icon.
According to a Mental Floss article from 2018, current Costco president and CEO W. Craig Jelinek was in a meeting and complaining to Costco co-founder Jim Sinegal about how the company was losing money from sticking with Costco’s legendary quarter-pound hot dog and 20-ounce soda special.
As any real Costco enthusiast knows, the store’s deals aren’t limited to just the shopping aisles — the meal costs only $1.50. Costco hasn’t changed the price of the combo since 1984, when it was first introduced.
“I came to [Sinegal] once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends,’” Jelinek said during a speech at the Issaquah Chamber of Commerce’s luncheon in 2018. “He said, ‘If you raise the effing hot