I love Costco so much I decided to buy their stock a couple of years ago. Unfortunately, it’s been a bumpy ride for the stock over the last year, as with just about every retailer. But they’re seeing some improvement, and did better than analysts had predicted for their fourth quarter. And that’s a good thing for the stock, but also for the whole retail sector according to analysts and people who know about this kind of thing.
Here’s what Costco reported last week for their fiscal fourth quarter ending August 30th:
- Costco earned $374 million, or 85 cents a share, compared with $398 million, or 90 cents a share, a year earlier.
- Quarterly sales fell 3 percent to $21.89 billion from $23.1 billion a year earlier, excluding membership fees, which rose 3 percent to $490 million.
- Analysts, on average, were expecting earnings of 77 cents per share, on revenue of $22.33 billion.
- Sales at clubs open at least a year, a key retail gauge known as same-store sales, fell 5 percent. There was a 6 percent decline in the United States and a 3 percent drop abroad. Removing the effect of the stronger dollar and lower gas prices, sales at stores open at least a year rose 1 percent.
- Analysts were expecting a same-stores decline of 6.38 percent.
Some say that this indicates that things may be looking up for the retail sector and the economy in general. I don’t know about that but I’m glad that things are a little bit better for Costco than analysts had predicted.