Despite a tough consumer environment,
Costco Wholesale Corp.
) comparable-store sales results for January bettered analysts'
expectations. The warehouse retailer delivered comparable-store
sales growth of 4%, portraying an increase of 5% at the U.S. and
1% at international locations.
Excluding the effect of deflation in gasoline prices and
adverse impact of foreign currency fluctuations, Costco's
comparable-store sales for January rose 6%, reflecting comparable
sales growth of 5% at its U.S. locations and 8% at international
The holiday season was a tough one: while some make their way
through, others struggled to lure budget-constrained consumers.
Consumer spending environment was not very convincing, and
bargain hunters went from one shop to another to grab the best
deal. After a dismal holiday season, severe weather conditions
dampened consumers' spirits and reduced footfall at the malls.
Despite these challenges, Costco emerged strong.
Other retailers which performed surprisingly well include
L Brands, Inc.
The Gap, Inc.
) posting comparable-store sales growth of 9%, 2.9% and 1%,
Coming to Costco, comparable-store sales for the 22-week
period ended Feb 2, 2014, increased 3%, buoyed by 4% growth at
the U.S. and 1% increase at international locations. Excluding
the effect of gasoline prices and foreign currency fluctuations,
Costco's comparable-store sales for the period jumped 5%. Comps
increased 5% at the U.S. and 7% at international locations.
Total net sales for January rose 6% to $7.99 billion from
$7.51 billion in the year-ago period. Costco's net sales for the
22-week period increased 6% to $46.32 billion from $43.77 billion
in the year-ago period.
Costco currently operates 649 warehouses, comprising 462 in
the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25
in the United Kingdom, 18 in Japan, 10 in Taiwan, 9 in Korea, and
5 in Australia.
Currently, Costco carries a Zacks Rank #4 (Sell), indicating
lower-than-expected results in the past quarters. In the trailing
four quarters, it missed the Zacks' expectation by an average of
COSTCO WHOLE CP (COST): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
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