Despite a challenging environment,
Costco Wholesale Corporation
) came up with healthy sales report for August. Costco delivered
comparable-store sales (comps) growth of 4% that surpassed
analysts' expectations. Comps increased 4% at U.S. and 2% at
Excluding the effect of gasoline prices and foreign currency
fluctuations, Costco's comparable-store sales for August rose 6%,
reflecting comparable sales growth of 5% at its U.S. locations
and 8% at international outlets.
On the whole, retailers came up with mixed sales results for
August. The month got off to a slow start and the shift in
consumers' shopping preferences toward big-ticket items hurt
sales of apparel, shoes and accessories. However, sales picked up
later as retailers spent more on promotions and came up with
lucrative discounts to drive traffic. However, heavy discounts
raise concerns about margins.
Stein Mart Inc
), impressed analysts by posting a 3.8% rise in comps, while
The Gap, Inc
), witnessed a 2% increase in comps. However, discount store
), reported flat comps for the month of August.
Comparable-store sales for the fourth quarter of fiscal 2013
increased 5%, buoyed by 5% growth at U.S. and 4% increase at
international locations. Excluding the effect of gasoline prices
and foreign currency fluctuations, Costco's comparable-store
sales for the fourth quarter witnessed growth of 5%. Comps
increased 5% at U.S. and 7% at international locations.
Total net sales for August rose 7% to $7.95 billion from $7.44
billion in the year-ago period. Costco's net sales for the fourth
quarter increased 1% to $31.8 billion from $31.5 billion in the
Currently, Costco holds a Zacks Rank #4 (Sell).
COSTCO WHOLE CP (COST): Free Stock Analysis
FREDS INC (FRED): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
STEIN MART INC (SMRT): Free Stock Analysis
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